Deregulation as a source of China’s economic growth

IF 0.7 4区经济学 Q3 ECONOMICS

Macroeconomic Dynamics Pub Date : 2023-06-05 DOI:10.1017/s1365100523000238

Shiyuan Pan, Kai Xu, Kai Zhao

{"title":"Deregulation as a source of China’s economic growth","authors":"Shiyuan Pan, Kai Xu, Kai Zhao","doi":"10.1017/s1365100523000238","DOIUrl":null,"url":null,"abstract":"Abstract We develop a simple two-sector neoclassical growth model in which the upstream sector produces intermediate goods, and the downstream sector produces final goods with outputs from the upstream. While the downstream sector features perfect competition, firms in the upstream sector engage in Cournot competition and charge a markup. We show that the deregulation and the introduction of competition in the upstream goods sector not only increases the productivity in the sector but also has a substantial spillover effect on the productivity of the downstream sector and factor prices. We calibrate the model to the Chinese economy and use the calibrated model to quantitatively evaluate the extent to which the deregulation in the upstream market in China from 1998 to 2006 can account for the rapid economic growth and the high and rising returns to capital in China over the same period. Our quantitative experiments show that the deregulation in the upstream sector can account for a significant share of economic growth in China during the study period. In addition, our model delivers implications that are consistent with several other relevant observations in China during the same period.","PeriodicalId":18078,"journal":{"name":"Macroeconomic Dynamics","volume":"18 1","pages":"0"},"PeriodicalIF":0.7000,"publicationDate":"2023-06-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Macroeconomic Dynamics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1017/s1365100523000238","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}

引用次数: 0

Abstract

Abstract We develop a simple two-sector neoclassical growth model in which the upstream sector produces intermediate goods, and the downstream sector produces final goods with outputs from the upstream. While the downstream sector features perfect competition, firms in the upstream sector engage in Cournot competition and charge a markup. We show that the deregulation and the introduction of competition in the upstream goods sector not only increases the productivity in the sector but also has a substantial spillover effect on the productivity of the downstream sector and factor prices. We calibrate the model to the Chinese economy and use the calibrated model to quantitatively evaluate the extent to which the deregulation in the upstream market in China from 1998 to 2006 can account for the rapid economic growth and the high and rising returns to capital in China over the same period. Our quantitative experiments show that the deregulation in the upstream sector can account for a significant share of economic growth in China during the study period. In addition, our model delivers implications that are consistent with several other relevant observations in China during the same period.

查看原文本刊更多论文

放松管制是中国经济增长的一个源泉

摘要本文建立了一个简单的两部门新古典增长模型，其中上游部门生产中间产品，下游部门生产最终产品，其产出来自上游。当下游部门具有完全竞争时，上游部门的公司参与古诺竞争并收取加价。我们发现，上游商品部门的放松管制和引入竞争不仅提高了该部门的生产率，而且对下游部门的生产率和要素价格产生了实质性的溢出效应。我们将模型校准到中国经济，并使用校准后的模型来定量评估1998年至2006年中国上游市场放松管制对同期中国经济快速增长和高且不断上升的资本回报率的影响程度。我们的定量实验表明，在研究期间，上游部门的放松管制可以占中国经济增长的重要份额。此外，我们的模型提供的启示与同期中国的其他几个相关观测结果一致。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Macroeconomic Dynamics ECONOMICS-

CiteScore

2.10

自引率

11.10%

发文量

期刊介绍： Macroeconomic Dynamics publishes theoretical, empirical or quantitative research of the highest standard. Papers are welcomed from all areas of macroeconomics and from all parts of the world. Major advances in macroeconomics without immediate policy applications will also be accepted, if they show potential for application in the future. Occasional book reviews, announcements, conference proceedings, special issues, interviews, dialogues, and surveys are also published.