Does "Made in China 2025" Work for China? Evidence from Chinese Listed Firms

Lee Branstetter and Guangwei Li

No 30676, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Rising concern over the impact of Chinese industrial policy has led to severe trade tensions between China and some of its major trading partners. In recent years, foreign criticism has increasingly focused on the so-called "Made in China 2025" initiative. In this paper, we use information extracted from Chinese listed firms' financial reports and a difference-in-differences approach to examine how the "Made in China 2025" policy initiative has impacted firms' receipt of subsidies, R&D expenditure, patenting, productivity, and profitability. We find that while more innovation promotion subsidies seem to flow into the listed firms targeted by the policy, we see little statistical evidence of productivity improvement or increases in R&D expenditure, patenting and profitability. This paper suggests that the “Made in China 2025” initiative may have not yet achieved its target goals.

JEL-codes: O25 O32 (search for similar items in EconPapers)
Date: 2022-11
New Economics Papers: this item is included in nep-cna, nep-ino, nep-int and nep-lma
Note: ITI PR
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published as Li, Guangwei & Branstetter, Lee G., 2024. "Does “Made in China 2025” work for China? Evidence from Chinese listed firms," Research Policy, Elsevier, vol. 53(6).

Downloads: (external link)
http://www.nber.org/papers/w30676.pdf (application/pdf)

Related works:
Journal Article: Does “Made in China 2025” work for China? Evidence from Chinese listed firms (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:30676

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w30676

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().