Review of Industrial Organization

, Volume 46, Issue 4, pp 383–399 | Cite as

International Trade and Domestic Competition: Evidence from Belgium

  • Maria Caterina Bramati
  • Alberto A. Gaggero
  • Edna Maeyen Solomon
Article

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.

Keywords

Competition Domestic rivalry Exports National champion 

JEL Classification

C23 F14 L16 L40 

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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Maria Caterina Bramati
    • 1
  • Alberto A. Gaggero
    • 2
  • Edna Maeyen Solomon
    • 3
  1. 1.Department of Methods and Models for the Economy, Territory and FinanceSapienza University of RomeRomeItaly
  2. 2.Department of Economics and ManagementUniversity of PaviaPaviaItaly
  3. 3.Department of International Business and EconomicsUniversity of GreenwichLondonUK

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