Do Export Support Programs affect Prices, Quality, Markups and Marginal Costs? Evidence from a Natural Policy Experiment

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

Do Export Support Programs affect Prices, Quality, Markups and Marginal Costs? Evidence from a Natural Policy Experiment. / Munch, Jakob Roland; Buus, Magnus Tolum; Schaur, Georg; Rodrigue, Joel.

In: Review of Economics and Statistics, 2024.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Munch, JR, Buus, MT, Schaur, G & Rodrigue, J 2024, 'Do Export Support Programs affect Prices, Quality, Markups and Marginal Costs? Evidence from a Natural Policy Experiment', Review of Economics and Statistics. https://doi.org/10.1162/rest_a_01274

APA

Munch, J. R., Buus, M. T., Schaur, G., & Rodrigue, J. (2024). Do Export Support Programs affect Prices, Quality, Markups and Marginal Costs? Evidence from a Natural Policy Experiment. Review of Economics and Statistics. https://doi.org/10.1162/rest_a_01274

Vancouver

Munch JR, Buus MT, Schaur G, Rodrigue J. Do Export Support Programs affect Prices, Quality, Markups and Marginal Costs? Evidence from a Natural Policy Experiment. Review of Economics and Statistics. 2024. https://doi.org/10.1162/rest_a_01274

Author

Munch, Jakob Roland ; Buus, Magnus Tolum ; Schaur, Georg ; Rodrigue, Joel. / Do Export Support Programs affect Prices, Quality, Markups and Marginal Costs? Evidence from a Natural Policy Experiment. In: Review of Economics and Statistics. 2024.

Bibtex

@article{e5773fb2dc4e43c0b5fafa1a81ceb1ad,
title = "Do Export Support Programs affect Prices, Quality, Markups and Marginal Costs?: Evidence from a Natural Policy Experiment",
abstract = "Firms' success in international markets depends on their product's quality, prices, markups, and marginal cost. However, causally identified empirical evidence for the effect of trade policies that address non-tariff barriers on these mechanisms is rare. To fill this gap, we exploit a quasi-natural experiment in Denmark and examine the effects of an export support policy aimed at reducing non-tariff barriers to trade. We find that export support raises firm-level exports within markets. However, export support does not affect prices, quality, markups, or marginal costs. Instead, the results support trade theory predicting that firms grow in export markets by shifting demand.",
author = "Munch, {Jakob Roland} and Buus, {Magnus Tolum} and Georg Schaur and Joel Rodrigue",
year = "2024",
doi = "10.1162/rest_a_01274",
language = "English",
journal = "Review of Economics and Statistics",
issn = "0034-6535",
publisher = "MIT Press",

}

RIS

TY - JOUR

T1 - Do Export Support Programs affect Prices, Quality, Markups and Marginal Costs?

T2 - Evidence from a Natural Policy Experiment

AU - Munch, Jakob Roland

AU - Buus, Magnus Tolum

AU - Schaur, Georg

AU - Rodrigue, Joel

PY - 2024

Y1 - 2024

N2 - Firms' success in international markets depends on their product's quality, prices, markups, and marginal cost. However, causally identified empirical evidence for the effect of trade policies that address non-tariff barriers on these mechanisms is rare. To fill this gap, we exploit a quasi-natural experiment in Denmark and examine the effects of an export support policy aimed at reducing non-tariff barriers to trade. We find that export support raises firm-level exports within markets. However, export support does not affect prices, quality, markups, or marginal costs. Instead, the results support trade theory predicting that firms grow in export markets by shifting demand.

AB - Firms' success in international markets depends on their product's quality, prices, markups, and marginal cost. However, causally identified empirical evidence for the effect of trade policies that address non-tariff barriers on these mechanisms is rare. To fill this gap, we exploit a quasi-natural experiment in Denmark and examine the effects of an export support policy aimed at reducing non-tariff barriers to trade. We find that export support raises firm-level exports within markets. However, export support does not affect prices, quality, markups, or marginal costs. Instead, the results support trade theory predicting that firms grow in export markets by shifting demand.

U2 - 10.1162/rest_a_01274

DO - 10.1162/rest_a_01274

M3 - Journal article

JO - Review of Economics and Statistics

JF - Review of Economics and Statistics

SN - 0034-6535

ER -

ID: 337435782