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| Author: | Sakakibara, M. Porter, M. E. |
| Title: | Competing at home to win abroad: Evidence from Japanese industry |
| Journal: | Review of Economics and Statistics
2001 : MAY, VOL. 83:2, p. 310-322 |
| Index terms: | JAPAN HOME WORKING COMPETITION |
| Language: | eng |
| Abstract: | 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 market-share instability rather than employing structural variables such as seller concentration. The authors 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. |
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