Income Inequality and Export Prices across Countries

Lisandra Flach and Eckhard Janeba

No 4298, CESifo Working Paper Series from CESifo

Abstract: This paper provides first firm-level evidence of the links between income inequality and the patterns of trade and export prices. We identify a theoretical mechanism behind these links, which suggests that a more unequal income distribution leads to higher average prices. We test the theory using detailed data for Brazilian exporters and find that the destination countries’ first and second moment of the income distribution are important determinants of export prices. Controlling for income per capita, prices are systematically higher in more unequal countries, with this effect being particularly relevant for middle-income countries and holding only for differentiated goods.

Keywords: export prices; income distribution; product quality; markups (search for similar items in EconPapers)
JEL-codes: F12 F14 L11 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp4298.pdf (application/pdf)

Related works:
Journal Article: Income inequality and export prices across countries (2017)
Journal Article: Income inequality and export prices across countries (2017)
Working Paper: Income Inequality and Export Prices Across Countries (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4298

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().