Industrial Policy And Competition

Measures to foster competition include policies that are more dispersed across firms in a sector or measures that encourage younger and more productive enterprises

From:
Foreign, Commonwealth & Development Office
Published
1 January 2012
Country:
China
Document Type:
Working Paper
Theme:
Economic Growth
Authors:
Aghion, P., Harrison, A., Dewatripont, M., Legros, P., Du, L.

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.

Citation

Aghion, P.; Dewatripont, M.; Du, L.; Harrison, A.; Legros, P. Industrial Policy And Competition. National Bureau Of Economic Research, Cambridge, MA, USA (2012) 54 pp. [NBER Working Paper 18048]

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Published 1 January 2012
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