The growth of firms, markets and rents: Evidence from China

Daniel Berkowitz and Shuichiro Nishioka

Journal of Comparative Economics, 2024, vol. 52, issue 2, 383-399

Abstract: The evidence for whether China become more competitive following its accession to the World Trade Organization (WTO) is mixed. Using recent methods for estimating markups and profit shares, this paper documents that Chinese manufacturing firms on average collected more rents after the accession because the rate of net entry of firms lagged the rapid growth of the domestic market. While the selection on large productive firms drove the rise in the aggregate markups in the United States (De Loecker et al., 2020), these competitive forces played a secondary role in China.

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)
Date: 2024
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Working Paper: The Growth of Firms, Markets and Rents: Evidence from China (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:52:y:2024:i:2:p:383-399

DOI: 10.1016/j.jce.2023.12.006

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