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The Effect of Foreign Entry Regulation on Downstream Productivity: Microeconomic Evidence from China*

Year: 2018

Type: article

Abstract: We examine the cross‐industry influence of foreign entry regulation (based on a novel measure) on the productivity outcomes of downstream firms through input–output linkages in China. In contrast to the significant liberalization of the manufacturing sector, restrictions on the service sector remained stringent over the period 1997–2007. We find a powerful depressant effect of foreign entry barriers imposed on the upstream manufacturing and service industries on the productivity of downstream manufacturers, and this effect depends on a number of industry‐ and firm‐specific features. Our research calls for further investment liberalization (particularly in the service sector) in China.

Source: Scandinavian Journal of Economics

DOI: 10.1111/sjoe.12306

Authors: Sai Ding, Puyang Sun, Wei Jiang

Institutions: University of Glasgow, Nankai University, Southwestern University of Finance and Economics

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W2793343089