Exports in an Imperfect Competition Framework: An Analysis of 1,446 Exporters

Abstract

This paper explores empirically how export-competing performance is related\nto domestic and foreign market structure. Recent theoretical propositions that link\nelements of international and industrial economics are successfully tested on a vast\nsample of micro data. By means of nonparametric statistics as well as of regression\nanalysis, firm size, industrial concentration, product differentiation, location, information,\nand foreign subsidiaries are shown to be important elements in explaining\nBelgian exports behavior. Among the suggestions for economic policy that emerge, it\nappears that fostering large domestic sales of a firm and domestic concentration or\ndiscouraging direct investment abroad will put a brake on export rates.