Industry regulation, competition, and the dynamics of productivity growth: evidence from China’s iron and steel industry

Jianbai Huang (), Chuan Liu (), Daguo Lü () and Xiaoping Li ()
Additional contact information
Jianbai Huang: Business School, Central South University, Changsha,China
Chuan Liu: Business School, Central South University, Changsha,China
Daguo Lü: Institute of Industrial Economics, Jiangxi University of Finance Economics,Nanchang,China
Xiaoping Li: Business School, Central South University, Changsha,China

Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, 2015, vol. 33, issue 2, 299-324

Abstract: This study aims to investigate the characteristics of the efficient evolution of China’s iron and steel industry against the backdrop of limited openness and regulation and to discuss the important effects of regulatory policy and total factor productivity (TFP) of China’s iron and steel industry. The method adopted the Cobb–Douglas production function combined with a semi-parametric method to decompose productivity. This study based on the micro-level dataset of iron and steel enterprises in the database of China’s industrial enterprises between 1998 and 2007 that investigated the intrinsic correlation among corporate entry and exit, market competition of existing enterprises, and TFP growth in the iron and steel industry. The results of the research show that the entry-exit would promote the growth of the aggregate productivity, while the low efficiency of resource allocation would significantly inhibit the TFP growth. The basic conclusion is that, with substantial government intervention in enterprise investments, marketcompetition may not promote optimal resource allocation efficiency in China’s iron and steel industry, but make the allocation less efficient.

Keywords: productivity dynamics; industry regulation; market competition; China (search for similar items in EconPapers)
JEL-codes: L52 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.efri.uniri.hr/sites/efri.uniri.hr/files ... liu-lu-li-2015-2.pdf

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:rfe:zbefri:v:33:y:2015:i:2:p:299-324

Access Statistics for this article

More articles in Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics from University of Rijeka, Faculty of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Danijela Ujcic ().