Domestic rivalry and export performance: theory and evidence from international airline markets

Joseph Clougherty and Anming Zhang

Canadian Journal of Economics/Revue canadienne d'économique, 2009, vol. 42, issue 2, 440-468

Abstract: 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. La relation fort étudiée entre rivalité domestique et performance à l'exportation interpelle ceux qui défendent l'idée de supporter un champion national et ceux qui supporte l'idée de rivalité. Alors que la littérature spécialisée supporte généralement les effets positifs de la rivalité domestique, l'idée de support pour un champion national repose sur des fondements théoriques plus solides. On propose un cadre d'analyse théorique qui illustre trois voies par lesquelles la rivalité domestique se traduit en exportations internationales accrues. Des tests empiriques dans l'industrie mondiale du transport aérien soulignent l'existence d'une voie particulière – un effet de performance améliorée de l'entreprise – qui connecte la rivalité domestique et l'amélioration des exportations vers l'étranger.

Date: 2009
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Citations: View citations in EconPapers (25)

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https://doi.org/10.1111/j.1540-5982.2009.01515.x

Related works:
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 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: https://EconPapers.repec.org/RePEc:wly:canjec:v:42:y:2009:i:2:p:440-468

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