How top exporters compete? Evidence from Spain
Juan de Lucio (),
Asier Minondo () and
Francisco Requena Silvente ()
Economics and Business Letters, 2018, vol. 7, issue 2, 55-61
This paper analyzes whether top exporters follow a cost-based or a quality-based strategy. Using Spanish firm-level export data for 2016, we show that firms that set lower export prices have larger export revenues. We also find that exporters obtain larger revenues from their low-price products than from their high-price products. Some results suggest that the negative effects of a higher export price on export revenues can be attenuated if firms export goods that provide scope for quality-differentiation.
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Persistent link: https://EconPapers.repec.org/RePEc:ove:journl:aid:12671
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