Date of this Version
American Economic Journal: Macroeconomics
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 L11, L25, L52, O14, O25, O47, P31)
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industrial policy, competition, application fees, intellectual property policy, patent system, innovation and productivity, renewal fees
Aghion, P., Dewatripont, M., Du, L., Harrison, A. E., & Legros, P. (2015). Industrial Policy and Competition. American Economic Journal: Macroeconomics, 7 (4), 1-32. http://dx.doi.org/10.1257/mac.20120103
Date Posted: 19 February 2018
This document has been peer reviewed.