Hans-Martin Straume () and Erling Vårdal ()
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Hans-Martin Straume: Department of Economics, University of Bergen, and Department of Economics, BI Norwegian Business School, Postal: Department of Economics, P.O. 7802, N-5020 Bergen
Erling Vårdal: Department of Economics, University of Bergen, Postal: Department of Economics, P.O. 7802, N-5020 Bergen
Abstract: We use highly disaggregated Norwegian custom data of importing firms to investigate differences in obtained import prices in the period 2003-2009. In addition to the importing firm we are also able to identify the foreign exporter. The obtained import prices are related to firm characteristics as size of the firm, degree of specialization and also the chosen invoicing currency. Our focus is on one single product; fresh apples. We find a surprisingly high variation in import prices. It turns out that the firm specific variables, largeness and specialization, result in significantly lower import prices. In addition, if apples are priced in the currency of the exporter, he must accept a 13-18 per cent drop in the price he obtains. This effect proves to be highly significant.
Keywords: import prices; firm specific factors; transaction data; tariff regimes
26 pages, October 3, 2015
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