Industrial Policy and Competition

Philippe Aghion, Jing Cai, Mathias Dewatripont, Luosha Du, Ann Harrison and Patrick Legros

Chapter 15 in Globalization, Firms, and Workers, 2022, pp 349-380 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Using a comprehensive dataset of all medium and large enterprises in China between 1998 and 2007, we show that industrial policies allocated to competitive sectors or that foster competition in a sector increase productivity growth. We measure competition using the Lerner Index and include as industrial policies subsidies tax holidays, loans, and tariffs. Measures to foster competition include policies that are more dispersed across firms in a sector or measures that encourage younger and more productive enterprises.

Keywords: Globalization; Trade Reform; Foreign Direct Investment; Labour Markets; Employment; Wages; Offshoring; Innovation; Credit Constraints; Industrial Policy; Labour Rights Activism (search for similar items in EconPapers)
JEL-codes: F02 F6 F63 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Industrial Policy and Competition (2015)
Working Paper: Industrial policy and competition (2015)
Working Paper: Industrial Policy and Competition (2012)
Working Paper: Industrial Policy and Competition (2011)
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