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

  • Clougherty, Joseph A.
  • Zhang, Anming

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 C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6871.

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Date of creation: Jun 2008
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Handle: RePEc:cpr:ceprdp:6871
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