Bulgaria's Export Prices and Pricing-To-Market Behaviour

The paper tests for potential pricing-to-market for the export industries of textiles and machinery in Bulgaria, at eight-digit level over the period 1998-2008. Panel estimation is undertaken and a fixed-effects linear model is estimated. The empirical evidence reported here offers new evidence for Bulgaria that has not been investigated before. The observed evidence of price discrimination, although not strong, and mainly ex post, is in exports to the EU where export prices are relatively stable in local currency in the destination markets. There is no evidence for pricing-to-market for exports to the Balkan and the New EU member countries.