| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w23678 |
| 来源ID | Working Paper 23678 |
| Local Protectionism, Market Structure, and Social Welfare: China's Automobile Market | |
| Panle Jia Barwick; Shengmao Cao; Shanjun Li | |
| 发表日期 | 2017-08-21 |
| 出版年 | 2017 |
| 语种 | 英语 |
| 摘要 | While China has made great strides in transforming its centrally-planned economy to a market-oriented economy, there still exist widespread interregional trade barriers, such as policies and practices that protect local firms against competition from non-local firms. This study documents the presence of local protectionism and quantifies its impacts on market competition and social welfare in the context of China’s automobile market. This market exhibits a salient feature that vehicle models by joint ventures (JVs) and especially state-owned enterprises (SOEs) command much higher market shares in their headquarter province than at the national level. Through spatial discontinuity analysis at provincial borders, falsification tests, and consumer surveys, we first confirm protective policies such as subsidies to local brands as the primary contributing factor. We then set up and estimate a market equilibrium model to quantify the impact of local protection, controlling for other demand and supply factors. Counterfactual simulations show that local protection leads to significant choice distortions, resulting in 18.7 billion yuan of consumer welfare loss, amounting to 40% of total subsidy. Provincial governments face a prisoner’s dilemma: according to our estimates, local protection reduces aggregate social welfare, but the provincial governments have no incentive to unilaterally remove local protection. |
| 主题 | Microeconomics ; Welfare and Collective Choice ; International Economics ; Trade ; Public Economics ; Taxation ; Industrial Organization ; Market Structure and Firm Performance ; Regulatory Economics ; Industry Studies |
| URL | https://www.nber.org/papers/w23678 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/581351 |
| 推荐引用方式 GB/T 7714 | Panle Jia Barwick,Shengmao Cao,Shanjun Li. Local Protectionism, Market Structure, and Social Welfare: China's Automobile Market. 2017. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w23678.pdf（2225KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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