Quality competition and pricing-to-market: A unified framework for the analysis of bilateral unit values

This article presents a unified framework for analyzing two factors that have been independently studied as determinants of unit values in international trade: product differentiation by quality (which suggests that unit values should be positively correlated with exporters' per capita income) and p...

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Autores principales: Ferrantino, Michael J., Feinberg, Robert M., Deason, Lauren
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2012
Materias:
Acceso en línea:https://hdl.handle.net/10568/153310
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author Ferrantino, Michael J.
Feinberg, Robert M.
Deason, Lauren
author_browse Deason, Lauren
Feinberg, Robert M.
Ferrantino, Michael J.
author_facet Ferrantino, Michael J.
Feinberg, Robert M.
Deason, Lauren
author_sort Ferrantino, Michael J.
collection Repository of Agricultural Research Outputs (CGSpace)
description This article presents a unified framework for analyzing two factors that have been independently studied as determinants of unit values in international trade: product differentiation by quality (which suggests that unit values should be positively correlated with exporters' per capita income) and pricing‐to‐market (which suggests they should be positively correlated with importers' per capita income). No previous work has considered both exporter and importer income effects and allowed these effects to vary by product. On a large sample of bilateral unit values for 2005, we find that about 56% of all Harmonized System (HS)‐6 products demonstrate both significant exporter‐income effects and importer‐income effects, with the former predominating in prevalence and magnitude. Distance‐related effects appearing directly in prices appear significantly larger than one would expect as a result of shipping margins.
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spelling CGSpace1533102024-11-15T08:52:11Z Quality competition and pricing-to-market: A unified framework for the analysis of bilateral unit values Ferrantino, Michael J. Feinberg, Robert M. Deason, Lauren markets international trade This article presents a unified framework for analyzing two factors that have been independently studied as determinants of unit values in international trade: product differentiation by quality (which suggests that unit values should be positively correlated with exporters' per capita income) and pricing‐to‐market (which suggests they should be positively correlated with importers' per capita income). No previous work has considered both exporter and importer income effects and allowed these effects to vary by product. On a large sample of bilateral unit values for 2005, we find that about 56% of all Harmonized System (HS)‐6 products demonstrate both significant exporter‐income effects and importer‐income effects, with the former predominating in prevalence and magnitude. Distance‐related effects appearing directly in prices appear significantly larger than one would expect as a result of shipping margins. 2012-01 2024-10-01T13:55:56Z 2024-10-01T13:55:56Z Journal Article https://hdl.handle.net/10568/153310 en Limited Access Wiley Ferrantino, Michael J.; Feinberg, Robert M.; Deason, Lauren 2012. Quality competition and pricing-to-market: A unified framework for the analysis of bilateral unit values. Southern Economic Journal 78(3): 860--877
spellingShingle markets
international trade
Ferrantino, Michael J.
Feinberg, Robert M.
Deason, Lauren
Quality competition and pricing-to-market: A unified framework for the analysis of bilateral unit values
title Quality competition and pricing-to-market: A unified framework for the analysis of bilateral unit values
title_full Quality competition and pricing-to-market: A unified framework for the analysis of bilateral unit values
title_fullStr Quality competition and pricing-to-market: A unified framework for the analysis of bilateral unit values
title_full_unstemmed Quality competition and pricing-to-market: A unified framework for the analysis of bilateral unit values
title_short Quality competition and pricing-to-market: A unified framework for the analysis of bilateral unit values
title_sort quality competition and pricing to market a unified framework for the analysis of bilateral unit values
topic markets
international trade
url https://hdl.handle.net/10568/153310
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AT feinbergrobertm qualitycompetitionandpricingtomarketaunifiedframeworkfortheanalysisofbilateralunitvalues
AT deasonlauren qualitycompetitionandpricingtomarketaunifiedframeworkfortheanalysisofbilateralunitvalues