|
|
|
DP6871
Domestic Rivalry and Export Performance: Theory and Evidence from International Airline Markets
|
|
|
|
Publication Date:
|
June 2008
|
|
|
|
|
|
|
|
|
Link to this Page:
|
www.cepr.org/pubs/dps/DP6871.asp.asp
|
|
|
The much-studied relationship between domestic rivalry and export performance consists of those supporting a national-champion rationale, and those supporting a rivalry rationale. While the empirical literature generally supports the positive effects of domestic rivalry, the national-champion rationale actually rests on firmer theoretical ground. We address this inconsistency by providing a theoretical framework that illustrates three paths via which domestic rivalry translates into enhanced international exports. Furthermore, empirical tests on the world airline industry elicit the existence of one particular path – an enhanced firm performance effect – that connects domestic rivalry with improved international exports.
|
|
|
|
|