Citation

Discussion Paper Details

Please find the details for DP14941 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Consumer Taste in Trade

Author(s): Bee Yan Aw-Roberts, Yi Lee and Hylke Vandenbussche

Publication Date: June 2020

Keyword(s): consumer taste, exports, firm-product, Food, productivity and Quality

Programme Area(s): International Trade and Regional Economics

Abstract: This paper documents the importance of consumer taste for the food industry using firm-product level customs data by destination country. We identify consuer taste through the use of a control function approach and estimate it jointly with other demand parameters using a flexible demand specification. We find that, on average, consumer taste explains as much of the variation in export revenue as marginal costs. The contribution of consumer taste to export revenue variation, ranges between 2% to 30% depending on the product category in the food industry. Our results also show that consumer taste decreases in distance but this relationship is non-monotonic.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14941

Bibliographic Reference

Aw-Roberts, B, Lee, Y and Vandenbussche, H. 2020. 'Consumer Taste in Trade'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14941