International Trade and Domestic Competition: Evidence from Belgium

Maria Bramati (), Alberto Gaggero and Edna Solomon ()

Review of Industrial Organization, 2015, vol. 46, issue 4, 383-399

Abstract: We investigate the effect of domestic market competition on firm-level export intensity. We employ a comprehensive dataset of Belgian firms from 2005–2008, when the fall in the number of firms engaged in trade was accompanied by a growing amount of transactions. The resulting increase in the domestic concentration of Belgian firms has sparked numerous debates, since the direction of causality between domestic market structure and export performance is unclear. We apply the fractional logit estimator and control for both self-selection and simultaneity bias. We find that a positive linkage exists between the level of competition and export intensity. Copyright Springer Science+Business Media New York 2015

Keywords: Competition; Domestic rivalry; Exports; National champion; C23; F14; L16; L40 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s11151-015-9454-3

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