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Discussion Paper Details

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

Author(s): Joseph A. Clougherty and Anming Zhang

Publication Date: June 2008

Keyword(s): airlines, exports, national champion and rivalry hypothesis

Programme Area(s): Industrial Organization and International Trade and Regional Economics

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.

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Bibliographic Reference

Clougherty, J and Zhang, A. 2008. 'Domestic Rivalry and Export Performance: Theory and Evidence from International Airline Markets'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6871