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- W3138039296 abstract "Exploiting the gradualism of the Chinese economic reforms and cross-sectional variations in entry rates, we show empirical evidence from firm-level data that industries with higher entry rates achieve higher growth and a more competitive market structure in subsequent years. We then embed firm entry into a model of endogenous productivity and market structure with heterogeneous firms and sectors, and calibrate it to the Chinese manufacturing sector in 2004-7. We find the positive impact of entry on growth is achieved primarily through a pro-competitive effect, whereby entry induces endogenously a larger fraction of industries to be more competitive in the economy. We quantify the contribution on growth from the reduction of entry barriers associated with the state-owned enterprise reforms in the late 1990s and early 2000s and find it explains 20% of the aggregate growth of the manufacturing sector from 2004-7. More generally, we highlight the critical role of reducing entry barriers in promoting competition and growth in developing countries." @default.
- W3138039296 created "2021-03-29" @default.
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- W3138039296 date "2021-02-01" @default.
- W3138039296 modified "2023-09-28" @default.
- W3138039296 title "Growing Through Competition: The Reduction of Entry Barriers Among Chinese Manufacturing Firms" @default.
- W3138039296 hasPublicationYear "2021" @default.
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