NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Luosha Du

Contact and additional information for this authorAll publicationsWorking Papers only

Working Papers and Chapters

May 2012Industrial Policy and Competition
with Philippe Aghion, Mathias Dewatripont, Ann Harrison, Patrick Legros: w18048
This paper argues that sectoral policy aimed at targeting production activities to one particular sector, can enhance growth and efficiency if it made competition-friendly. First, we develop a model in which two firms can operate either in the same (higher growth) sector or in different sectors. To escape competition, firms can either innovate vertically or differentiate by chosing a different sector from its competitor. By forcing firms to operate in the same sector, sectoral policy induces them to innovate "vertically" rather than differentiate in order to escape competition with the other firm. The model predicts that sectoral targeting enhances average growth and productivity more when competition is more intense within a sector and when competition is preserved by the policy. In the s...
February 2011Do Institutions Matter for FDI Spillovers? The Implications of China's "Special Characteristics"
with Ann Harrison, Gary Jefferson: w16767
A number of recent studies examine productivity spillovers from foreign direct investment (FDI) to China’s domestic industrial enterprises. This study goes further by investigating the implications of institutions for the nature of productivity spillovers during 1998-2007. We examine three institutional features that comprise aspects of China’s “special characteristics”: (1) the different sources of FDI, where FDI is nearly evenly divided between mostly Organization for Economic Co-operation and Development (OECD) countries and the region known as “Greater China”, consisting of Hong Kong, Taiwan, and Macau; (2) China’s heterogeneous ownership structure, involving state- (SOEs) and non-state owned (non-SOEs) enterprises, firms with foreign equity participation, and non-SOE, domestic firms;...

Contact and additional information for this authorAll publicationsWorking Papers only

 
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