PRC Industrial Policies Postdate Rather than Lead Economic Activity

39 Pages Posted: 20 Feb 2020

See all articles by Carsten A. Holz

Carsten A. Holz

Hong Kong University of Science & Technology (HKUST) - Division of Social Science

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Date Written: 2020

Abstract

Industrial policies are widely credited with upgrading the economic structure of the People's Republic of China (PRC) and advancing its economy towards and beyond the current technological frontier. Yet the data suggest that the PRC's economy-wide investment patterns—with investment embodying technological progress—are largely divorced from industrial policies, and, if anything, predate them. The significant shifts in investment across sectors and ownership forms that have taken place since the early 2000s are driven more by profitability considerations and private entrepreneurship than by government policies.

Suggested Citation

Holz, Carsten A., PRC Industrial Policies Postdate Rather than Lead Economic Activity (2020). CESifo Working Paper No. 8097, Available at SSRN: https://ssrn.com/abstract=3541445

Carsten A. Holz (Contact Author)

Hong Kong University of Science & Technology (HKUST) - Division of Social Science ( email )

Division of Social Science
Clear Water Bay
Clear Water Bay, Kowloon
Hong Kong

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