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

  • Joseph A. Clougherty
  • Anming Zhang

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. ZUSAMMENFASSUNG - Der Zusammenhang zwischen Wettbewerb auf dem heimischen Markt und der Exportleistung spaltet die Wissenschaft: Die eine Argumentationslinie bevorzugt nationale Marktvorherrschaft als Determinante eines guten Exportergebnisses, während andere auf nationalen Wettbewerb als vorteilhafte Grundlage verweisen. Obwohl in der empirischen Literatur positive Wirkungen von Wettbewerb auf heimischen Märkten gezeigt werden konnten, stützt sich der Ansatz der nationalen Marktvorherrschaft auf stabileren theoretischen Hintergrund. Zur Klärung dieser Unstimmigkeit bieten wir einen theoretischen Rahmen an, der drei Möglichkeiten der Übertragung von heimischem Wettbewerb zu gesteigerten Exporterfolgen aufzeigt. Empirische Untersuchungen an international agierenden Luftfahrtunternehmen legen insbesondere einen Übertragungsmechanismus nahe: Ein Leistungsfähigkeitseffekt ist dafür verantwortlich, dass wettbewerbsgeprüfte Unternehmen eine verbesserte Exportleistung aufweisen.

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Paper provided by Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) in its series CIG Working Papers with number SP II 2008-12.

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Length: 37 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:wzb:wzebiv:spii2008-12
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