Industrial Policy and Competition-Reference-Cited by-同舟云学术

Industrial Policy and Competition

Published:2015-10-01 Issue:4 Volume:7 Page:1-32
ISSN:1945-7707
Container-title:American Economic Journal: Macroeconomics
language:en
Short-container-title:American Economic Journal: Macroeconomics

Author:

Aghion Philippe¹,Cai Jing²,Dewatripont Mathias³,Du Luosha⁴,Harrison Ann⁵,Legros Patrick⁶

Affiliation:

1. Department of Economics, Harvard University, Littauer Center 22, 1805 Cambridge Street, Cambridge, MA 02138, and National Bureau of Economic Research (NBER) (e-mail: )

2. Department of Economics, University of Michigan, 611 Tappan Street, 365A Lorch Hall, Ann Arbor, MI 48109 (e-mail: )

3. Banque National de Belgique and Université libre de Bruxelles (ECARES), 50 avenue F.D. Roosevelt, C.P. 114-04, 1050 Bruxelles, Belgique (e-mail: )

4. China Development Bank, 18 fuxingmen neidajie, xichengqu, Beijing, China 100031 (e-mail: )

5. The Wharton School, University of Pennsylvania, 2016 Steinberg Hall-Dietrich Hall, Philadelphia, Pennsylvania 19104, and NBER (e-mail: )

6. Université libre de Bruxelles (ECARES), 50 avenue F.D. Roosevelt, C.P. 114-04, 1050 Bruxelles, Belgium (e-mail: )

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. (JEL L11, L25, L52, O14, O25, O47, P31)

Publisher

American Economic Association

Subject

General Economics, Econometrics and Finance

Link

https://pubs.aeaweb.org/doi/pdf/10.1257/mac.20120103

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