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International Trade and Domestic Competition: Evidence from Belgium

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  • Maria Bramati
  • Alberto Gaggero
  • Edna Solomon

Abstract

We investigate the effect of domestic market competition on firm-level export intensity. We employ a comprehensive dataset of Belgian firms from 2005–2008, when the fall in the number of firms engaged in trade was accompanied by a growing amount of transactions. The resulting increase in the domestic concentration of Belgian firms has sparked numerous debates, since the direction of causality between domestic market structure and export performance is unclear. We apply the fractional logit estimator and control for both self-selection and simultaneity bias. We find that a positive linkage exists between the level of competition and export intensity. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Maria Bramati & Alberto Gaggero & Edna Solomon, 2015. "International Trade and Domestic Competition: Evidence from Belgium," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 46(4), pages 383-399, June.
    • Handle: RePEc:kap:revind:v:46:y:2015:i:4:p:383-399
    DOI: 10.1007/s11151-015-9454-3
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    Cited by:

    1. Eric E. O. Opoku & Isabel K. M. Yan & Kate Hynes, 2020. "Reaching up and reaching out: The impact of competition on firms’ productivity and export decisions," Pacific Economic Review, Wiley Blackwell, vol. 25(1), pages 69-101, February.
    2. Cali,Massimiliano & Montfaucon,Angella Faith Lapukeni, 2021. "Non-Tariff Measures, Import Competition, and Exports," Policy Research Working Paper Series 9801, The World Bank.
    3. Aleksandar B. Todorov, 2023. "Rule of Law and Large Firms Concentration in Southeast Europe," Bulgarian Economic Papers bep-2023-06, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski, revised Oct 2023.
    4. Edmund Y. Wu & Danny C. K. Ho & Stephen C. H. Ng & Lawrence C. Leung, 2023. "Uniqueness, complexities, and research issues of logistics and trade facilitation in Greater Bay Area of China," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-22, December.
    5. Javier Changoluisa & Michael Fritsch, 2020. "New Business Formation and Incumbents’ Perception of Competitive Pressure," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(1), pages 165-197, February.
    6. Pyper, Keith & Marie Doherty, Anne & Gounaris, Spiros & Wilson, Alan, 2022. "A contingency-based approach to the nexus between international strategic brand management and export performance," Journal of Business Research, Elsevier, vol. 148(C), pages 472-488.

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    More about this item

    Keywords

    Competition; Domestic rivalry; Exports; National champion; C23; F14; L16; L40;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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