Intense local competition may hinder firms' ability to export globally.
The article explores how competition and asset value affect export incentives for firms in developing countries with limited access to credit. It shows that while firms in competitive industries are more likely to export, intense local competition can limit their ability to build assets, which is crucial for entering global markets. Essentially, being in a competitive market can help firms access global markets, but it can also lead to lower profits and hinder asset accumulation, ultimately affecting their export potential.