Economics, Econometrics and Finance
4 years ago

Exporters charge higher markups, impacting global trade dynamics significantly.

American Economic Review
Markups and Firm-Level Export Status
Jan De Loecker, Frédèric Warzynski

Paper Summary

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The study developed a method to estimate markups using production data, finding that exporters have higher markups than non-exporters, and markups increase when firms start exporting.