Economic reforms and industrial policy in a panel of Chinese cities
| Autor: | Simon Alder, Fabrizio Zilibotti, Lin Shao |
|---|---|
| Přispěvatelé: | University of Zurich, Zilibotti, Fabrizio |
| Rok vydání: | 2013 |
| Předmět: |
UBS UBS Center Working Paper Series
China Economics and Econometrics productivity P21 total factor productivity difference 2002 Economics and Econometrics Industrial policy O25 Human capital difference-in-difference economic growth economic reforms industrial policy investments satellite light special economic zones Physical capital Spillover effect 10007 Department of Economics 0502 economics and business jel:P21 Economics Economic geography 050207 economics jel:O25 Productivity Total factor productivity H72 050205 econometrics O53 L52 05 social sciences Special Economic Zones in jel:H72 R11 jel:L52 Difference in differences 330 Economics O38 Special economic zone jel:O53 11198 UBS Center for Economics in Society jel:O38 China economic growth economic reforms difference-in-difference industrial policy investments satellite light total factor productivity Special Economic Zones jel:R11 |
| Zdroj: | Journal of Economic Growth |
| Popis: | The process of economic reforms launched in 1978, and gradually extended until current days, has catapulted China into a stellar growth trajectory that has proven highly resilient. In this paper, we estimate the effect on economic development of China’s industrial policy, in particular, the establishment of Special Economic Zones (SEZ), a salient economic reform. We use data from a panel of 276 Chinese cities and prefectures from 1988 to 2010. Our difference-in-difference estimator exploits the variation in the establishment of SEZ across time and space. We find that the establishment of a state-level SEZ is associated with an increase in the level of GDP of about 20%, but not with a permanently steeper growth path. This finding is confirmed with alternative specifications and in a sub-sample of inland provinces, where the selection of cities to host the zones was based on administrative criteria. Decomposing the effect of SEZ on GDP into different channels shows that this worked mainly through the accumulation of physical capital, although there is some evidence of increasing productivity and human capital investments. Using light intensity as an alternative measure for economic activity confirms the positive effects of SEZ. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|