exports prices , income distribution , product quality , markups
Abstract:
This paper provides first firm-level evidence of the links between income inequality and
the patterns of trade and export prices. We identify a theoretical mechanism behind these
links, which suggests that a more unequal income distribution leads to higher average
prices. We test the theory using detailed data for Brazilian exporters and find that the
destination countries’ first and second moment of the income distribution are important
determinants of export prices. Controlling for income per capita, prices are systematically
higher in more unequal countries, with this effect being particularly relevant for middle-
income countries and holding only for differentiated goods.
Dieser Eintrag ist Teil der Universitätsbibliographie.
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