Intra-National Protectionism in China: Evidence from the Public Disclosure of ‘Illegal’ Drug Advertising

Markus Eberhardt, Zheng Wang () and Zhihong Yu ()

No 2013-07, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: This paper provides micro-level evidence that drug advertising regulations and inspections in China are used by local governments to discriminate against firms from outside the province. Furthermore, the degree of discrimination varies across firms in that drug manufacturers which have closer ties with rival provinces are more likely to be targeted. These findings demonstrate that giving provincial governments strong incentives to compete with each other may exacerbate the market distortions inherent in a partially reformed economy such as China.

Keywords: China; intra-national protectionism; drug advertising (search for similar items in EconPapers)
JEL-codes: F15 L25 P26 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-dev and nep-tra
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Citations: View citations in EconPapers (2)

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Working Paper: Intra-National Protectionism in China: Evidence from the Public Disclosure of ‘Illegal’ Drug Advertising (2013)
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