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

Joseph Clougherty and Anming Zhang

No 6871, CEPR Discussion Papers from Centre for Economic Policy Research

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)
Date: 2008-06
New Economics Papers: this item is included in nep-ind
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Domestic rivalry and export performance: theory and evidence from international airline markets (2009)
Journal Article: Domestic rivalry and export performance: theory and evidence from international airline markets (2009)
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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