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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.

Suggested Citation

  • Clougherty, Joseph A. & Zhang, Anming, 2008. "Domestic Rivalry and Export Performance: Theory and Evidence from International Airline Markets," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 225, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    • Handle: RePEc:trf:wpaper:225
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    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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