American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Industrial Policy and Competition
American Economic Journal: Macroeconomics
vol. 7,
no. 4, October 2015
(pp. 1–32)
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)Citation
Aghion, Philippe, Jing Cai, Mathias Dewatripont, Luosha Du, Ann Harrison, and Patrick Legros. 2015. "Industrial Policy and Competition." American Economic Journal: Macroeconomics, 7 (4): 1–32. DOI: 10.1257/mac.20120103Additional Materials
JEL Classification
- L11 Production, Pricing, and Market Structure; Size Distribution of Firms
- L25 Firm Performance: Size, Diversification, and Scope
- L52 Industrial Policy; Sectoral Planning Methods
- O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
- O25 Industrial Policy
- O47 Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- P31 Socialist Enterprises and Their Transitions
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