Revisiting the determinants of unit values

Tadashi Ito

No 356, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper studies the issue of how traded quantities affect trade prices, which has been relatively unexplored in the trade literature. By reproducing previous literatures' regressions which are based on the general equilibrium trade theories, incorporating the role of traded quantities, this paper shows a possibility of prevalence of the second degree price discrimination (quantity discount) in international trade, rather than the pricing behaviour of the general equilibrium theories.

Keywords: Trade theory; International trade; Heterogeneous firms trade model; Unit value; Second degree price discrimination; Quantity discount (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 2012-06-01
New Economics Papers: this item is included in nep-int
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 356. 2012-06-01

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