Document Type
Working Paper
Publication Date
10-9-2023
College/Unit
Chambers College of Business and Economics
Document Number
24-01
Department/Program/Center
Economics
Abstract
The evidence for whether China become more competitive following its accession to the World Trade Organization (WTO) is mixed. Using recent methods for estimating markups and profit shares, this paper documents that Chinese manufacturing firms on average collected more rents after the accession because the rate of net entry of firms lagged the rapid growth of the domestic market. While the selection on large productive firms drove the rise in the aggregate markups in the United States (De Loecker et al, 2020), these competitive forces played a secondary role in China.
Digital Commons Citation
Berkowitz, Daniel and Nishioka, Shuichiro, "The Growth of Firms, Markets and Rents: Evidence from China" (2023). Economics Faculty Working Papers Series. 74.
https://researchrepository.wvu.edu/econ_working-papers/74