Markups, Quality, and Trade Costs

Markups, Quality, and Trade Costs
We investigate theoretically and empirically how exporters adjust their markups across destinations depending on bilateral distance, tariffs, and the quality of their exports. Under the assumption that trade costs are both ad valorem and per unit, our model predicts that markups rise with distance and fall with tariffs, but these effects are... READ MORE...

Publication date: February 2020
ISBN 9781513529257
$18.00

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