Distance to destination and export price variation within agri-food firms

Dela-Dem Fiankor

No 321203, 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium from Agricultural Economics Society - AES

Abstract: This paper assesses how bilateral distance affects observed spatial variation in free-on-board (FOB) export prices across destinations. I estimate linear models that regress firm-product- destination-time FOB unit values on distance, firm-product-time fixed effects, and destination country controls. I find that if distance doubles the average Swiss agri-food firm increases its FOB export price by 2.3%. My findings show that consumers in distant countries pay higher prices partly because firms charge higher prices net cost-insurance-freight costs. I explain my findings using trade models where firms endogenously choose destination-specific quality for their products.

Keywords: Agribusiness; Demand and Price Analysis; International Relations/Trade (search for similar items in EconPapers)
Pages: 27
Date: 2022-04
New Economics Papers: this item is included in nep-agr and nep-int
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc22:321203

DOI: 10.22004/ag.econ.321203

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