The determinants and effectiveness of industrial policy in china: A study based on Five-Year Plans

Yiyun Wu, Xiwei Zhu, Nicolaas Groenewold

Research output: Contribution to journalArticle

1 Citation (Scopus)

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 languageEnglish
Pages (from-to)225-242
Number of pages18
JournalChina Economic Review
Volume53
DOIs
Publication statusPublished - Feb 2019

Cite this

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title = "The determinants and effectiveness of industrial policy in china: A study based on Five-Year Plans",
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.",
keywords = "Industrial policy, Industry selection, Five-Year Plan, PROPENSITY SCORE, EMPIRICAL-TEST, INVESTMENT, LOCATION, IMPACT, TRADE",
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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 journalArticle

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AU - Zhu, Xiwei

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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.

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KW - Industry selection

KW - Five-Year Plan

KW - PROPENSITY SCORE

KW - EMPIRICAL-TEST

KW - INVESTMENT

KW - LOCATION

KW - IMPACT

KW - TRADE

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