One State, Many Regions: China's Fragmented Industrial Takeover

Myrto Kalouptsidi
Additional contact information
Myrto Kalouptsidi: Princeton University

No 1247, 2015 Meeting Papers from Society for Economic Dynamics

Abstract: In recent years, Chinese firms have rapidly dominated a number of capital intensive industries (steel, solar panels, shipbuilding) in world markets. At the same time, China's domestic industries are fragmented: on one hand, there is substantial regional industrial duplication due to China's decentralized bureaucracy; on the other hand, even within provinces, these industries tend to be characterized by a large number of small firms. In this paper, we study the role that industrial policy has played in China's (fragmented) industrial takeover. We first document and measure the support provided by Chinese provincial governments. We then ask what their impact is on global (mis)allocation and welfare. We explore the unintended consequences of provincial competition driven by non-market based policy instruments, such as excess capital expansion. Finally, we study the consequences of consolidation policies brought forward by the central government.

Date: 2015
New Economics Papers: this item is included in nep-cna and nep-tra
References: Add references at CitEc
Citations:

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2015/paper_1247.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed015:1247

Access Statistics for this paper

More papers in 2015 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().