Are diamonds forever? An industrial-economics perspective

Abstract

Porter's diamond model of national competitiveness is shown to be comparable to the traditional structure-conduct-performance paradigm of industrial economics. Subsequently, empirical findings relating to national competitiveness in the industrial economics literature are reviewed, after a brief review of direct competitiveness measurement. A number of mechanisms with regard to national competitiveness are observed: the negative influence of differentiation on import and export volumes, the attraction of noncompetitive market structures for potential importers, the disciplining effect of imports, and the positive effect of creating economies of scale on the import volume.

Citation

Jegers, M. (1995), "Are diamonds forever? An industrial-economics perspective", Rugman, A.M., Van Den Broec, J. and Verbeke, A. (Ed.) Beyond The Diamond (Research in Global Strategic Management, Vol. 5), Emerald Group Publishing Limited, Leeds, pp. 115-137. https://doi.org/10.1016/S1064-4857(95)05006-X