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Domestic Market Structure and Performance in Global Markets: Theory and Empirical Evidence from U.S. Food Manufacturing Industries
Authors:Kim  Donghwan  Marion  Bruce W
Institution:(1) Korea Rural Economic Institute, Seoul, Korea;(2) Department of Agricultural Economics, University of Wisconsin-, Madison, U.S.A
Abstract:This paper formally articulates Porter's hypothesis that the degree of competition in domestic markets is positively linked to performance in international markets. Hypotheses are tested using measures of the trade performance of U.S. food manufacturing industries as proxies for international competitiveness. Empirical results are generally consistent with Porter's hypothesis; net export share is negatively related to industry concentration. The competitiveness of agricultural inputs, R & D intensity, and trade barriers of other countries were also found to be important determinants of the performance of these industries in global markets.
Keywords:International competition  market structure  industrial organization  competitiveness  food manufacturing  trade
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