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Sector-Level Competition and Export: Evidence from Exporter Dynamics Database

Author

Listed:
  • Senol Babuşçu

    (Department of Banking and Finance, Baskent University, Ankara, Turkey)

  • Adalet Hazar

    (Department of Banking and Finance, Baskent University, Ankara, Turkey)

  • M. Nihat Solakoglu

    (Department of Banking and Finance, Çankaya University, Ankara, Turkey)

  • Cengiz Tunc

    (Central Bank of the Republic of Turkey, Ankara, Turkey)

Abstract

We study the effect of sector-level competition on export by utilizing the Exporter Dynamics Database of the World Bank that provides sector-level competition measure along with destination-specific detailed export data. The results of the analysis show a nonlinear effect of sector-level competition on export. While at less competitive sectors, an increase in competition depresses export, at highly competitive sectors, an increase in competition generates a trade-promoting effect on export. The observed nonlinear effect is robust across sectors and countries. Therefore, productivity of peer firms could generate negative effect on a firm’s export performance contrary to the usual positive effect of a firm’s own productivity.

Suggested Citation

  • Senol Babuşçu & Adalet Hazar & M. Nihat Solakoglu & Cengiz Tunc, 2019. "Sector-Level Competition and Export: Evidence from Exporter Dynamics Database," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(03), pages 1-18, October.
    • Handle: RePEc:wsi:jicepx:v:10:y:2019:i:03:n:s1793993319500133
    DOI: 10.1142/S1793993319500133
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