Average income, income inequality and export unit values

This paper analyses the relationship between a country’s income distribution and its exports’ unit values. Using bilateral export flows, we not only confirm positive association average values, but further identify heterogeneous with inequality: find greater spread to be associated higher values in case of poor countries only. These results are robust inclusion controls for other determinants as well use alternative measures inequality quality index. We finally discuss various theoretical rationalisations this content exports along dimension, show suggestive evidence that demand-side mechanisms can account it, at least partly.