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

Joseph A. Clougherty () and Anming Zhang ()
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Anming Zhang: Wissenschaftszentrum Berlin (WZB) & CEPR-London, Research Unit: MP-CIC, 10785 Berlin, Germany

No 225, Discussion Papers from SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich

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: national champion; rivalry hypothesis; exports; airlines (search for similar items in EconPapers)
JEL-codes: L52 L40 (search for similar items in EconPapers)
Date: 2008-02
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Related works:
Working Paper: Domestic Rivalry and Export Performance: Theory and Evidence from International Airline Markets (2008)
Working Paper: Domestic Rivalry and Export Performances: Theory and Evidence from International Airline Markets (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:trf:wpaper:225

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