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How top exporters compete? Evidence from Spain

Juan de Lucio (), Raúl Mínguez, Asier Minondo () and Francisco Requena Silvente ()

Economics and Business Letters, 2018, vol. 7, issue 2, 55-61

Abstract: 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.

Date: 2018
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