Intra-National Protectionism in China: Evidence from the Public Disclosure of ‘Illegal’ Drug Advertising
AbstractThis paper provides micro-level evidence that drug advertising regulations and inspections in China are used by local governments to discriminate against firms from outside the province. Furthermore, the degree of discrimination varies across firms in that drug manufacturers which have closer ties with rival provinces are more likely to be targeted. These findings demonstrate that giving provincial governments strong incentives to compete with each other may exacerbate the market distortions inherent in a partially reformed economy such as China.
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Bibliographic InfoPaper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2013-07.
Date of creation: 2013
Date of revision:
China; intra-national protectionism; drug advertising;
Other versions of this item:
- Markus Eberhardt & Zheng Wang & Zhihong Yu, 2013. "Intra-National Protectionism in China: Evidence from the Public Disclosure of 'Illegal' Drug Advertising," Economics Series Working Papers WPS/2013-07, University of Oxford, Department of Economics.
- Markus Eberhardt & Zheng Wang & Zhihong Yu, 2013. "Intra-National Protectionism in China: Evidence from the Public Disclosure of ‘Illegal’ Drug Advertising," Discussion Papers 2013-04, University of Nottingham, GEP.
- F15 - International Economics - - Trade - - - Economic Integration
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-27 (All new papers)
- NEP-DEV-2013-04-27 (Development)
- NEP-TRA-2013-04-27 (Transition Economics)
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