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Export profitability, competition and technology

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  • Marjit, Sugata
  • Ray, Moushakhi

Abstract

The present paper seeks to examine the interplay between competition and technology in the export decision-making of homogeneous firms in an oligopolistic framework. The firms' behaviour is studied here in two alternative scenarios: (i) a protected domestic market, and (ii) a non discriminated domestic market (i.e. absence of trading cost etc across the border). In the first scenario, we argue that a higher degree of competition in the domestic market encourages exports when advanced technology prevails and vice versa. Similar effects are noticed in the second scenario. These propositions are analysed both theoretically and empirically.

Suggested Citation

  • Marjit, Sugata & Ray, Moushakhi, 2017. "Export profitability, competition and technology," International Review of Economics & Finance, Elsevier, vol. 47(C), pages 35-45.
    • Handle: RePEc:eee:reveco:v:47:y:2017:i:c:p:35-45
    DOI: 10.1016/j.iref.2016.10.001
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    Cited by:

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    3. Marjit, Sugata & Ray, Moushakhi, 2021. "Competition, asset build up and export incentives: The role of imperfect credit market," Journal of Asian Economics, Elsevier, vol. 77(C).

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