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Industrial Policy and Competition

Author

Listed:
  • Philippe Aghion
  • Mathias Dewatripont
  • Luosha Du
  • Ann Harrison
  • Patrick Legros

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.

Suggested Citation

  • Philippe Aghion & Mathias Dewatripont & Luosha Du & Ann Harrison & Patrick Legros, 2012. "Industrial Policy and Competition," NBER Working Papers 18048, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:18048
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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