EconPapers    
Economics at your fingertips  
 

Investigating the effects of market segmentation on firm survival and their heterogeneities in China

Peixin Li, Lixia Li, Yichun Xie and Xueliang Zhang

Growth and Change, 2021, vol. 52, issue 4, 2614-2634

Abstract: The paper uses the hazards model to estimate how market segmentation affects firm survival and accompanied resource allocation efficiency in China based on the manufacturing firm's data in 1998–2007 from the Annual Survey of Industrial Firms, considering the time‐varying and heterogeneous effect with the dynamics and characteristics of enterprises. According to the results, although firms benefit from market segmentation in the inauguration period, the protection diminishes afterwards and eventually becomes a hazard to the firm survival. This paper also takes one step further in finding that market segmentation may distort the resource allocation by protecting low‐productivity and low‐profitability firms from exiting the market. The findings suggest that local governments should strengthen cooperation to break administrative barriers and promote regional integrated development in order to realize the benefits of the domestic super‐large‐scale market.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/grow.12539

Related works:
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:bla:growch:v:52:y:2021:i:4:p:2614-2634

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0017-4815

Access Statistics for this article

Growth and Change is currently edited by Dan Rickman and Barney Warf

More articles in Growth and Change from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2022-02-19
Handle: RePEc:bla:growch:v:52:y:2021:i:4:p:2614-2634