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Measuring Effects of Competition Among Domestic Firms on Global Market Performance : An Application of Error Correction Model to U.S. Beer Industry

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Michael Porter contents that domestic market structure and firm rivalry are important determinants of international competitiveness. This paper tests Porter’s hypothesis by applying error correction model to data from U.S. beer industry. Empirical results are generally consistent with Porter’s hypothesis. Domestic seller concentration is negatively related to international competitiveness as measured by U.S. net exports of world trade.

Abstract

Ⅰ. Introduction

Ⅱ. The Impact of Domestic Competition on Global Performance

Ⅲ. Structural Changes in U.S. Beer Industry

Ⅳ. Performance of U.S. Brewers in Global Markets

Ⅴ. Data and Econometric Model

Ⅵ. Results

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