@article{morgan2012industrial,
  title = {An Industrial Organization Approach to the Study of Export Intensity: Strategic Market Interactions and Export Intensity},
  author = {Horatio M. Morgan},
  year = 2012,
  url = {https://ibimapublishing.com/articles/JRIO/2012/287993/},
  journal = {Journal of Research in Industrial Organization},
  volume = 2012 (2012),
  pages = 7,
  doi = 10.5171/2012.287993,
  abstract = {In developing countries characterized by relatively small domestic markets, local firms may have to internationalize in order to realize their growth potential. Despite the formidable challenges that may accompany the internationalization process, globally-oriented managers and domestic policymakers may effectively craft coherent export-promotion strategies and policies, respectively, if they have a solid understanding of the determinants of export performance. While the empirical export performance literature in the field of international business (IB) has the potential to contribute towards this end, it appears to be hampered by a paucity of rigorous theoretical frameworks. In the virtual absence of a well-articulated direction on how to fill this theoretical void, this paper makes a case for the application of industrial organization (IO)-based modeling in this line of research. It formulates a model of exporting in the context of market structures characterized by a monopoly, and a (symmetric linear) Stackleberg duopoly with price discrimination. Under this theoretical framework, it is found that the Stackleberg leader has an export intensity of zero, while the Stackleberg follower has an export intensity of one-half. But at an export intensity of two-thirds, the price-discriminating monopolist has the largest export intensity. These analytical results provide insights into the so-called “industry effects” phenomenon that has been noted in empirical export performance studies, and strengthens the theoretical argument for the conventional use of industry-dummy variables to control for hypothesized industry effects. More generally, this paper signals a potentially fruitful direction for IO-based modeling in the extant empirical export performance literature.},
  keywords = {Export Intensity; Industrial Organization; Internationalization; Price Discrimination},
  note = Article ID: 287993
}