The Effect of Economic Reform and Industrial Policy in a Panel of Chinese Cities
AbstractWe use the establishment of Special Economic Zones in China to estimate the effect of economic reforms on GDP. A panel of 270 Chinese cities from 1988 to 2010 allows us to exploit the variation in the establishment of zones across time and space. The results from our baseline difference-in-difference specification suggest that the establishment of a major zone led to an increase in the level of GDP by about 9%. This result is similar in a sub-sample of inland provinces, where the selection of cities in which zones were established was more transparent. We also use a set of alternative identification strategies and find mostly similar effects.
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Bibliographic InfoPaper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c017_061.
Length: 45 pages
Date of creation: Sep 2012
Date of revision:
China; Economic Reform; Industrial Policy; Development;
Find related papers by JEL classification:
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O25 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
- P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
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