The effect of foreign entry regulation on downstream productivity: Microeconomic evidence from China

Ding, S. , Sun, P. and Jiang, W. (2019) The effect of foreign entry regulation on downstream productivity: Microeconomic evidence from China. Scandinavian Journal of Economics, 121(3), pp. 925-959. (doi: 10.1111/sjoe.12306)

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Abstract

We examine the cross‐industry influence of foreign entry regulation (based on a novel measure) on the productivity outcomes of downstream firms through the input‐output linkages in China. In contrast to the significant liberalization in the manufacturing sector, restrictions on the services sector remained stringent over period of 1997‐2007. We find a powerful depressant effect of foreign entry barriers imposed on the upstream manufacturing and services industries on the productivity of downstream manufacturers, and the effect depends on a number of industry‐ and firm‐specific features. Our research calls for further investment liberalization (particularly in the services sector) in China.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Ding, Dr Sai
Authors: Ding, S., Sun, P., and Jiang, W.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Scandinavian Journal of Economics
Publisher:Wiley
ISSN:0347-0520
ISSN (Online):1467-9442
Published Online:17 April 2018
Copyright Holders:Copyright © 2018 The editors of The Scandinavian Journal of Economics
First Published:First published in Scandinavian Journal of Economics 121:925-959
Publisher Policy:Reproduced in accordance with the publisher copyright policy

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