ENTRY BARRIERS AND GROWTH: THE ROLE OF ENDOGENOUS MARKET STRUCTURE

• 成果类型: Article
• 署名作者: Jiang, Helu; Zheng, Yu; Zhu, Lijun
• 署名单位: Shanghai University of Finance & Economics; University of London; Queen Mary University London; Centre for Economic Policy Research - UK; Peking University; University of London; Queen Mary University London
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12695
• 发表日期: 2024
• 页码: 1221-1248
• 关键词: innovation; CHINA; COMPETITION; imitation

摘要

We use China's growth experience as a laboratory to study how reductions in administrative and regulatory entry barriers contribute to growth. We develop a model of endogenous productivity and market structure with heterogeneous firms and frictional entry and calibrate it to Chinese manufacturing firms. We show that the reduction of entry barriers brings about 1.05 percentage points of productivity growth over the 1990-2004 period, accounting for 18.3% of the productivity growth in the 2004-7 period. A decomposition exercise shows that entry mainly affects growth through promoting a more competitive market structure, which more than offsets the negative Schumpeterian effect.