Work

Industrial Policy and Competition

Year: 2012

Type: report

Abstract: Using a comprehensive dataset of all medium and large enterprises in China between 1998 and 2007, we show that industrial policies allocated to competitive sectors or that foster competition in a sector increase productivity growth.We measure competition using the Lerner Index and include as industrial policies subsidies, tax holidays, loans, and tariffs.Measures to foster competition include policies that are more dispersed across firms in a sector or measures that encourage younger and more productive enterprises.

Source: National Bureau of Economic Research

DOI: 10.3386/w18048

Authors: Philippe Aghion, Mathias Dewatripont, Luosha Du, Ann Harrison, Patrick Legros

Institutions: National Bureau of Economic Research, Harvard University, Université Libre de Bruxelles, China Development Bank, University of Pennsylvania

Language: English

Topic: China's Socioeconomic Reforms and Governance

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

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

Open Access status: green