This paper by Jan De Loecker and Frederic Warzynski explores the relationship between markups and firm-level export status using plant-level data. The authors develop an estimating equation to estimate markups based on standard production plant-level data, incorporating insights from Hall (1986) and the control function approach of Olley and Pakes (1996). Their methodology allows for various underlying price-setting models, dynamic inputs, and does not require measuring the user cost of capital or assuming constant returns to scale. The paper finds that markups are significantly higher when controlling for unobserved productivity, exporters charge higher markups on average, and firms' markups increase upon export entry. These findings contribute to understanding the productivity-export black box and provide evidence for the productivity premia observed in firms entering export markets. The study uses a rich micro dataset from Slovenian firms over the period 1994-2000, which experienced significant changes in trade flows and productivity due to economic reforms and EU accession.This paper by Jan De Loecker and Frederic Warzynski explores the relationship between markups and firm-level export status using plant-level data. The authors develop an estimating equation to estimate markups based on standard production plant-level data, incorporating insights from Hall (1986) and the control function approach of Olley and Pakes (1996). Their methodology allows for various underlying price-setting models, dynamic inputs, and does not require measuring the user cost of capital or assuming constant returns to scale. The paper finds that markups are significantly higher when controlling for unobserved productivity, exporters charge higher markups on average, and firms' markups increase upon export entry. These findings contribute to understanding the productivity-export black box and provide evidence for the productivity premia observed in firms entering export markets. The study uses a rich micro dataset from Slovenian firms over the period 1994-2000, which experienced significant changes in trade flows and productivity due to economic reforms and EU accession.