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Domestic Rivalry and Export Performance: Theory and Evidence from International Airline Markets

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Author Info
Joseph A. Clougherty
Anming Zhang () (Wissenschaftszentrum Berlin (WZB) & CEPR-London, Research Unit: MP-CIC, 10785 Berlin, Germany, Sauder School of Business, University of British Columbia, Vancouver, B.C. , Canada V6T 1Z2)

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Abstract

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.

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Publisher Info
Paper provided by SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Papers with number 225.

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Date of creation: Feb 2008
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Handle: RePEc:trf:wpaper:225

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Related research
Keywords: national champion; rivalry hypothesis; exports; airlines;

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Find related papers by JEL classification:
L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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