The dual role of market power in the Big Push: from evidence to theory

• 成果类型: Article
• 署名作者: de Fontenay, CC
• 署名单位: University of Melbourne; University of Melbourne
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2003.09.003
• 发表日期: 2004
• 页码: 221-238
• 关键词: Industrialization; Big push; monopoly; hold-up; institutions

摘要

This paper demonstrates that a firm with market power in an influential industry can play a crucial positive or negative role in the implementation of a Big Push policy, through its impact on the profits of firms in complementary industries. The firm has incentives to use its influence to tip the balance in favor of success. Conversely, if legal institutions are weak, the threat of hold-up may deter complementary investment and lead to failure of the Big Push. This is demonstrated in one of the first case-studies of a Big Push policy and in a model that generalizes the findings. (c) 2004 Elsevier B.V. All rights reserved.