Abstract
This paper examines industrial policy in China over the period of the 9th-12th Five-Year Plans (FYPs). Based on China's national and provincial FYPs and data disaggregated to the four-digit manufacturing sector level, it finds that the central government's preferences act as a key determinant of the provincial FYPs. It also shows that policy significantly improves output while it is in effect but there is no evidence of a beneficial effect beyond the end of the particular FYP. The results are consistently robust across a number of tests.
| Original language | English |
|---|---|
| Pages (from-to) | 225-242 |
| Number of pages | 18 |
| Journal | China Economic Review |
| Volume | 53 |
| DOIs | |
| Publication status | Published - Feb 2019 |
Cite this
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The determinants and effectiveness of industrial policy in china : A study based on Five-Year Plans. / Wu, Yiyun; Zhu, Xiwei; Groenewold, Nicolaas.
In: China Economic Review, Vol. 53, 02.2019, p. 225-242.Research output: Contribution to journal › Article
TY - JOUR
T1 - The determinants and effectiveness of industrial policy in china
T2 - A study based on Five-Year Plans
AU - Wu, Yiyun
AU - Zhu, Xiwei
AU - Groenewold, Nicolaas
PY - 2019/2
Y1 - 2019/2
N2 - This paper examines industrial policy in China over the period of the 9th-12th Five-Year Plans (FYPs). Based on China's national and provincial FYPs and data disaggregated to the four-digit manufacturing sector level, it finds that the central government's preferences act as a key determinant of the provincial FYPs. It also shows that policy significantly improves output while it is in effect but there is no evidence of a beneficial effect beyond the end of the particular FYP. The results are consistently robust across a number of tests.
AB - This paper examines industrial policy in China over the period of the 9th-12th Five-Year Plans (FYPs). Based on China's national and provincial FYPs and data disaggregated to the four-digit manufacturing sector level, it finds that the central government's preferences act as a key determinant of the provincial FYPs. It also shows that policy significantly improves output while it is in effect but there is no evidence of a beneficial effect beyond the end of the particular FYP. The results are consistently robust across a number of tests.
KW - Industrial policy
KW - Industry selection
KW - Five-Year Plan
KW - PROPENSITY SCORE
KW - EMPIRICAL-TEST
KW - INVESTMENT
KW - LOCATION
KW - IMPACT
KW - TRADE
U2 - 10.1016/j.chieco.2018.09.010
DO - 10.1016/j.chieco.2018.09.010
M3 - Article
VL - 53
SP - 225
EP - 242
JO - China Economic Review (Amsterdam)
JF - China Economic Review (Amsterdam)
SN - 1043-951X
ER -