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

Joseph A. Clougherty () and Anming Zhang

No 6871, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: airlines; exports; national champion; rivalry hypothesis (search for similar items in EconPapers)
JEL-codes: L40 L52 L93 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ind
Date: Written 2008-06

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Related works:
Working Paper: Domestic Rivalry and Export Performances: Theory and Evidence from International Airline Markets (2008)
Working Paper: Domestic Rivalry and Export Performance: Theory and Evidence from International Airline Markets (2008)
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