Competing At Home To Win Abroad: Evidence From Japanese Industry
The study explores the influence of domestic competition on international trade performance, using data from a broad sample of Japanese industries. Domestic rivalry is measured directly using marketshare instability rather than employing structural variables such as seller concentration. We find robust evidence that domestic rivalry has a positive and significant relationship with trade performance measured by world export share, particularly when R&D intensity reveals opportunities for dynamic improvement and innovation. Conversely, trade protection reduces export performance. These findings support the view that local competition - not monopoly, collusion, or a sheltered home market - pressures dynamic improvement that leads to international competitiveness. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Year of publication: |
2001
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Authors: | Sakakibara, Mariko ; Porter, Michael E. |
Published in: |
The Review of Economics and Statistics. - MIT Press. - Vol. 83.2001, 2, p. 310-322
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Publisher: |
MIT Press |
Saved in:
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