Export prices across firms and destinations

This article establishes six stylized facts about firms ’ export prices using detailed customs data on the universe of Chinese trade flows. First, across firms selling a given product, exporters that charge higher prices earn greater revenues ineachdestination, havebiggerworldwidesales, andentermoremarkets. Second, firms that export more, enter more markets, and charge higher export prices import more expensive inputs. Third, across destinations within a firm-product, firms set higher prices in richer, larger, bilaterally more distant and overall less remote countries. Fourth, across destinations within a firm-product, firms earn biggerrevenues inmarkets wheretheyset higherprices. Fifth, across firms within a product, exporters with more destinations offer a wider range of export prices. Finally, firms that export more, enter more markets, and offer a wider range of export prices pay a wider range of input prices and source inputs from more origin countries. We propose that trade models should incorporate two features to rationalizethesepatterns inthedata: moresuccessful exporters usehigherquality inputs to produce higher quality goods (stylized facts 1 and 2), and firms vary the quality of their products across destinations by using inputs of different qualit