Export product quality and markup of firms: evidence from China

Wen Yue

Applied Economics, 2023, vol. 55, issue 53, 6294-6309

Abstract: In this study, we analyse how export product quality affects the markup of firms. First, on the basis of the heterogeneous firm trade model, we clarify the internal mechanism of the effect of export product quality on the markup of firms through the channels of firm marginal production cost and product pricing. Second, using the micro data of Chinese firms from 2000 to 2007 and by estimating firm-level markup and export product quality, we construct a dynamic panel model to empirically analyze the impact of export product quality on the markup of the Chinese firms and mechanism of the impact. Results of the empirical analysis support the prediction of the theoretical model, that is, improvement of export product quality will positively affect the markup of firms by increasing their marginal cost of production and product pricing. From the product quality perspective, we provide new insights for understanding the impact of the export market on the markup of firms.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2022.2142193 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:applec:v:55:y:2023:i:53:p:6294-6309

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2022.2142193

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().