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Sector-level competition and export: Evidence from Exporter Dynamics Database

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2019

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Abstract

We study the effect of sector-level competition on export by utilizing the Exporter Dynamics Database of the World Bank that provides sector-level competition measure along with destination-specific detailed export data. The results of the analysis show a nonlinear effect of sector-level competition on export. While at less competitive sectors, an increase in competition depresses export, at highly competitive sectors, an increase in competition generates a trade-promoting effect on export. The observed nonlinear effect is robust across sectors and countries. Therefore, productivity of peer firms could generate negative effect on a firm's export performance contrary to the usual positive effect of a firm's own productivity. © 2019 World Scientific Publishing Company.

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Competition, International Trade, Sectoral Analysis

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Babuşçu, S...et al. (2019). "Sector-level competition and export: Evidence from Exporter Dynamics Database", Journal of International Commerce, Economics and Policy, Vol. 10, No. 3.

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Journal of International Commerce, Economics and Policy

Volume

10

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3

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