Indian buyers in global markets: Quality, prices, and productivity

M.A. Anderson, M.H. Davies, J.E. Signoret and S.L.S. Smith

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: We examine import prices paid by direct-sourcing Indian manufacturing firms in the early 2000s using a unique data set that matches firm characteristics with product and source-country trade data, offering a theoretical and empirical extension of Halpern and Koren (2007). We find that import prices are positively associated with firm productivity, distance from source-country, and source-country GDP per capita, and negatively associated with source-country remoteness, an effect we attribute to the higher scope for quality differentiation in less remote locations. Further, we find that source-country characteristics matter more, and cost factors less, for differentiated than for non-differentiated goods.

Keywords: Importers; Firm-level data; Pricing; Input quality; productivity; India (search for similar items in EconPapers)
JEL-codes: F1 F10 F12 F14 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2021-04
New Economics Papers: this item is included in nep-bec, nep-cwa, nep-eff and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2021-42

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