How top exporters compete? Evidence from Spain

  1. de Lucio, Juan 2
  2. Mínguez, Raúl 2
  3. Minondo, Asier 3
  4. Requena, Francisco 1
  1. 1 Universitat de València
    info

    Universitat de València

    Valencia, España

    ROR https://ror.org/043nxc105

  2. 2 Universidad Nebrija
    info

    Universidad Nebrija

    Madrid, España

    ROR https://ror.org/03tzyrt94

  3. 3 Universidad de Deusto
    info

    Universidad de Deusto

    Bilbao, España

    ROR https://ror.org/00ne6sr39

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Journal:
Economics and Business Letters

ISSN: 2254-4380

Year of publication: 2018

Volume: 7

Issue: 2

Pages: 55-61

Type: Article

DOI: 10.17811/EBL.7.2.2018.55-61 DIALNET GOOGLE SCHOLAR lock_openDialnet editor

More publications in: Economics and Business Letters

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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.

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Funding information

We gratefully acknowledge financial support from the Spanish Ministry of Economy and Competitiveness (MINECO ECO2016-79650-P and ECO2015-68057-R, co-financed with FEDER) and the Basque Government Department of Education, Language policy and Culture (IT629-13).

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