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Industrial policy and competition

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  • Industrial policy and competition
  • Aghion, Philippe; Cai, Jing; Dewatripont, Mathias; Du, Luosha; Harrison, Ann; Legros, Patrick
  • American Economic Association


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Title Industrial policy and competition
Similar Titles
Material Type Articles
Author(English)

Aghion, Philippe; Cai, Jing; Dewatripont, Mathias; Du, Luosha; Harrison, Ann; Legros, Patrick

Publisher

[Pittsburgh] : American Economic Association

Date 2015-10
Journal Title; Vol./Issue American Economic Journal: Macroeconomics:vol.7 (no.4)
Pages 33
Subject Country United States(Americas)
China(Asia and Pacific)
South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic Conditions
Economy < Economic Administration
Industry and Technology < Science/Technology
Holding American Economic Association
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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.