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

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  • Clougherty, Joseph A.
  • Zhang, Anming

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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Paper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 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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Cited by:
  1. Richard Harris & John Moffat, 2011. "R&D, innovation and exporting," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 33593, London School of Economics and Political Science, LSE Library.
  2. Federici, Daniela & Parisi, Valentino, 2012. "Corporate taxation and exports," MPRA Paper 41012, University Library of Munich, Germany.
  3. Németh, Adél & Niemeier, Hans-Martin, 2012. "Airline mergers in Europe – An overview on the market definition of the EU commission," Journal of Air Transport Management, Elsevier, Elsevier, vol. 22(C), pages 45-52.

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