The co-authored paper ENTRY BARRIERS AND GROWTH: THE ROLE OF ENDOGENOUS MARKET STRUCTURE by Associate Professor Jiang Helu of the Department of Labor Economics at the School of Economics, Shanghai University of Finance and Economics, was officially published in International Economic Review, an international Class I economics journal.
Abstract
We use China's growth experience as a laboratory to study how reductions in administrative and regulatory entry barriers contribute to growth. We develop a model of endogenous productivity and market structure with heterogeneous firms and frictional entry and calibrate it to Chinese manufacturing firms. We show that the reduction of entry barriers brings about 1.05 percentage points of productivity growth over the 1990–2004 period, accounting for 18.3% of the productivity growth in the 2004–7 period. A decomposition exercise shows that entry mainly affects growth through promoting a more competitive market structure, which more than offsets the negative Schumpeterian effect.
Author Profile
Jiang Helu is an Associate Professor and doctoral supervisor at the School of Economics, Shanghai University of Finance and Economics, and holds a Ph.D. in Economics from Washington University in St. Louis. Her main research areas include macroeconomics, growth and development, labor economics, and innovation and entrepreneurial markets. In recent years, she has published multiple papers in journals such as Journal of Monetary Economics, International Economic Review, and Review of Economic Dynamics. She is the principal investigator of a Youth Program project funded by the National Natural Science Foundation of China.
