Abstract:
This paper studies the impact of inventory-intensity, marketing-intensity
and firm size on the markups of exporting firms. We used audited financial
statement data of publicly listed companies in the spinning, weaving and finishing
industry within the textiles sector of Pakistan. We document five observations: 1)
average markup of exporters is relatively higher than non-exporters; 2) there is
higher dispersion in markups of non-exporters relative to exporters; 3) large firms
have relatively higher markup and marketing-intensity; 4) firms which have higher
marketing- and inventory-intensity also have higher markups; and 5) exporters
have relatively higher markup elasticity with respect to marketing-intensity,
inventory-intensity and growth in inventory-intensity.
