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Title: |
Pricing-to-Market in Korean Manufacturing
Exports |
| Author: |
Lee, Jaewoo |
| Author
Affiliation: |
U CA, Irvine |
| Source: |
International Economic Journal, Winter 1995, v. 9, no. 4, pp. 1-12 |
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Publication Date: |
Winter 1995 |
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Abstract: |
This paper shows that pricing-to-market
behavior is prevalent in sixteen Korean manufacturing export industries.
Since Korea is a relatively small country, its pricing-to-market can be
explained by the market power asymmetry between home and export markets.
This explanation yields two empirical predictions that are examined
here. First, pricing-to-market is affected by export market shares.
Second, export prices are affected by the exchange rate of a dominant
third country. The data provide support for the first prediction. |
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