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Can Belgian firms cope with the Chinese dragon and the Asian tigers ? The export performance of multi-product firms on foreign markets

Author

Listed:
  • Filip Abraham

    () (K.U.Leuven, Centre for Economic Studies)

  • Jan Van Hove

    () (H.U.Brussel
    K.U.Leuven)

Abstract

Exporting firms are affected in many ways by competition on foreign markets. This paper focuses on the impact of Asian competition on the bilateral export performance of Belgian firms, controlling for firm level as well as destination-market characteristics. Export performance is measured in several ways, including the export intensity, the variety and quality of trade as well as the export intensity growth. Export performance appears to differ substantially across firms, across sectors and across destination markets. Our overall results indicate that both the export intensity and variety of Belgian firms’ exports are reduced by Asian competition. Especially the competitive pressure caused by mainland China and Hong Kong is strong. The competitive pressure is intense in labour-intensive sectors but also felt in a wide range of activities with a higher value added. Belgian exporters cope with foreign competition by following a variety-expansion or a quality-upgrading strategy.

Suggested Citation

  • Filip Abraham & Jan Van Hove, 2010. "Can Belgian firms cope with the Chinese dragon and the Asian tigers ? The export performance of multi-product firms on foreign markets," Working Paper Research 204, National Bank of Belgium.
  • Handle: RePEc:nbb:reswpp:201010-204
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    File URL: https://www.nbb.be/doc/oc/repec/reswpp/wp204en.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. E. Dhyne & L. Dresse & C. Fuss & Ch. Piette, 2011. "Behaviour of Belgian firms in the context of globalisation : lessons from the conference on “International Trade : Threats and Opportunities in a Globalised World”," Economic Review, National Bank of Belgium, issue i, pages 73-88, June.
    2. Nakhoda, Aadil, 2012. "The effect of foreign competition on product switching activities: A firm level analysis," MPRA Paper 39167, University Library of Munich, Germany.
    3. Giorgia Giovannetti & Marco Sanfilippo, 2016. "China’s competition and the export price strategies of developed countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(2), pages 238-254, March.
    4. Henri Bogaert & Chantal Kegels, 2012. "Planning Paper 112 - Compétitivité de la Belgique - Défis et pistes de croissance
      [Planning Paper 112 - Concurrentievermogen van België - Uitdagingen en groeipistes]
      ," Planning Papers 112, Federal Planning Bureau, Belgium.

    More about this item

    Keywords

    multi-product firms; international trade; variety; quality; export intensity; competition; Asia;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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