Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/184819
Authors: 
Hynes, Kate
Evans Osei Opoku, Eric
Yan, Isabel K. M.
Year of Publication: 
2017
Series/Report no.: 
Working Paper Series 17/19
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.
Subjects: 
Productivity
Export Propensity
Export Intensity
Competition
SSET-Poisson Model
JEL: 
C21
J24
L25
Document Type: 
Working Paper
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