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Industrial Policy and Competition

Philippe Aghion, Mathias Dewatripont (), Luosha Du, Ann Harrison () and Patrick Legros

No 18048, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: D2 L5 L6 O2 O3 (search for similar items in EconPapers)
Date: 2012-05
New Economics Papers: this item is included in nep-com and nep-sbm
Note: EFG IO
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Published as Philippe Aghion & Jing Cai & Mathias Dewatripont & Luosha Du & Ann Harrison & Patrick Legros, 2015. "Industrial Policy and Competition," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(4), pages 1-32, October.

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