Document Type
Working Paper
Publication Date
9-20-2022
College/Unit
Chambers College of Business and Economics
Document Number
22-05
Department/Program/Center
Economics
Abstract
Using recent methods for estimating firm-level markups and profit shares, we document that Chinese manufacturing firms collected more rents following China's accession to the World Trade Organization (WTO). This is because the net entry of firms lagged the massive growth in the domestic market. These effects were particularly strong in domestic markets where state ownership was pervasive. While selection on large productive firms drove the rise in the aggregate markups in the United State (De Loecker et al, 2020), these competitive forces played a secondary role in Chinese manufacturing.
Digital Commons Citation
Berkowitz, Daniel and Nishioka, Shuichiro, "The Growth of Firms, Markets and Rents: Evidence from China" (2022). Economics Faculty Working Papers Series. 64.
https://researchrepository.wvu.edu/econ_working-papers/64