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International trade and domestic competition: Evidence from Belgium

International trade and domestic competition: Evidence from Belgium

Bramati, Maria Caterina, Gaggero, Alberto A. and Solomon, Edna (2015) International trade and domestic competition: Evidence from Belgium. Review of Industrial Organization, 46 (4). pp. 383-399. ISSN 0889-938X (Print), 1573-7160 (Online) (doi:10.1007/s11151-015-9454-3)

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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.

Item Type: Article
Additional Information: The final publication is available at Springer via http://dx.doi.org/10.1007/s11151-015-9454-3.
Uncontrolled Keywords: Competition, Domestic rivalry, Exports, National champion
Subjects: H Social Sciences > HF Commerce
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Greenwich Political Economy Research Centre (GPERC)
Last Modified: 21 Apr 2017 14:26
Selected for GREAT 2016: GREAT b
Selected for GREAT 2017: None
Selected for GREAT 2018: None
URI: http://gala.gre.ac.uk/id/eprint/13145

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