Cross-industry growth differences with asymmetric industries and endogenous market structure

Huang Chien-Yu and Ji Lei ()
Additional contact information
Huang Chien-Yu: Institute of Urban Development, Nanjing Audit University, Nanjing, China
Ji Lei: Sam Houston State University, Huntsville, TX, USA

The B.E. Journal of Macroeconomics, 2019, vol. 19, issue 2, 18

Abstract: We develop a two-industry R&D growth model with a free-entry endogenous market structure to evaluate the impact of industrial fundamentals on cross-industry differences of TFP growth and R&D intensity. Endogenous market structure in our model allows the firm’s market size to respond to the firm’s entry and exit which complements the models with an exogenous market structure in the previous literature. We find that surprisingly, an industry with a relatively high R&D productivity or appropriability exhibits “relatively” low in-house innovation growth and R&D intensity during transition. Moreoever, we examine the effects of R&D subsidies and patent breadth policies on industry differences by implementing both asymmetric and symmetric policy rules. We find that only asymmetric R&D subsidies have impacts on TFP growth and R&D intensity differences.

Keywords: cross-industry TFP growth differences; endogenous growth; endogenous market structure (search for similar items in EconPapers)
JEL-codes: L10 O40 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/bejm-2017-0045 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:bpj:bejmac:v:19:y:2019:i:2:p:18:n:3

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejm/html

DOI: 10.1515/bejm-2017-0045

Access Statistics for this article

The B.E. Journal of Macroeconomics is currently edited by Arpad Abraham and Tiago Cavalcanti

More articles in The B.E. Journal of Macroeconomics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().