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Reaching Up and Reaching Out: The Impact of Competition on Firms’ Productivity and Export Decisions
Date Issued
2017-09
Date Available
2017-12-12T15:44:41Z
Abstract
This paper investigates the effect of competition in both the domestic and foreign markets on firm productivity and export decisions using firm level data from 139 countries. Using a Sample Selection Endogenous Treatment (SSET) Poisson model that tackles both the issue of endogenous sample selection and endogenous treatment at the same time, we document robust evidence that strong competition in the domestic market propels firms to be more productive, and rising domestic competition increases firms’ propensity to export. However, firms’ export intensity, i.e. how much they export, is not directly influenced by competition in the domestic market. Moreover, lower competition in the foreign market increases the propensity of domestic firms to export, enlarging the set of exporting firms to firms with relatively smaller export amount.
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Start Page
1
End Page
39
Series
UCD Centre for Economic Research Working Paper Series
2017/19
Copyright (Published Version)
2017 the Authors
Classification
C21
J24
L25
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
File(s)
Owning collection
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1132
Acquisition Date
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Mar 27, 2024