The Growth of Firms, Markets and Rents: Evidence from China

Daniel Berkowitz and Shuichiro Nishioka
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Shuichiro Nishioka: West Virginia University, Department of Economics

No 22-05, Working Papers from Department of Economics, West Virginia University

Abstract: Using recent methods for estimating firm-level markups and profit shares, we document that Chinese manufacturing firms collected more rents following China's accession to the World Trade Organization (WTO). This is because the net entry of firms lagged the massive growth in the domestic market. These effects were particularly strong in domestic markets where state ownership was pervasive. While selection on large productive firms drove the rise in the aggregate markups in the United State (De Loecker et al, 2020), these competitive forces played a secondary role in Chinese manufacturing.

Keywords: Markups; Profit shares; Net entry; Market expansion; Trade liberalization in China (search for similar items in EconPapers)
JEL-codes: F13 L11 O19 O53 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2022-09
New Economics Papers: this item is included in nep-cna, nep-com and nep-int
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The growth of firms, markets and rents: Evidence from China (2024)
Working Paper: The Growth of Firms, Markets and Rents: Evidence from China (2022)
Working Paper: The Growth of Firms, Markets and Rents: Evidence from China
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