Competing at Home to Win Abroad: Evidence from Japanese Industry

31 Pages Posted: 3 Jul 2000

See all articles by Mariko Sakakibara

Mariko Sakakibara

University of California, Los Angeles (UCLA) - Policy Area

Michael E. Porter

Harvard University - Strategy Unit

Multiple version iconThere are 2 versions of this paper

Date Written: February 1, 2000

Abstract

The study explores the influence of domestic competition on international trade performance, using data from a broad sample of Japanese industries. Domestic rivalry is measured directly using market share instability rather than employing structural variables such as seller concentration. We find robust evidence that domestic rivalry has a positive and significant relationship with trade performance measured by world export share, particularly when R&D intensity reveals opportunities for dynamic improvement and innovation. Conversely, trade protection reduces export performance. These findings support the view that local competition, not monopoly, collusion, or a sheltered home market, pressures dynamic improvement that leads to international competitiveness.

JEL Classification: F14, L11

Suggested Citation

Sakakibara, Mariko and Porter, Michael E., Competing at Home to Win Abroad: Evidence from Japanese Industry (February 1, 2000). Available at SSRN: https://ssrn.com/abstract=224477 or http://dx.doi.org/10.2139/ssrn.224477

Mariko Sakakibara (Contact Author)

University of California, Los Angeles (UCLA) - Policy Area ( email )

110 Westwood Plaza
Los Angeles, CA 90095
United States
310-825-7831 (Phone)
310-206-3337 (Fax)

Michael E. Porter

Harvard University - Strategy Unit ( email )

Harvard Business School
Soldiers Field Road
Boston, MA 02163
United States
(617) 495-6309 (Phone)
(617) 547-8543 (Fax)

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