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LI, LIXING
(2)
answer(s).
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Item
1
ID:
188156
Firms Quasi-dynamics in Chinese Manufacturing Industry
/ Li, Lixing
Li, Lixing
Journal Article
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Summary/Abstract
We explore firm quasi-dynamics (entry, exit, and growth) in Chinese manufacturing industry and investigate how these dynamics vary across regions. Our results show that relative to provinces with less developed economies, in provinces with more developed economies (i) there is a higher proportion of new firms; (ii) new firms are smaller and more labor-intensive; (iii) firms exit at a quicker rate, and surviving firms grow faster. These results point toward cross-region differences in market efficiency in terms of how much it costs a firm to enter or exit the market. Our findings shed light on how firms should adapt their strategies across regions and how the government should create sound policies on industrial upgrading and relocation.
Key Words
Firm Dynamics
;
Entry and Exit
;
Industrial Shift
;
Labor Cost
;
Market Thickness
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2
ID:
103918
Incentive role of creating cities in China
/ Li, Lixing
Li, Lixing
Journal Article
0 Rating(s) & 0 Review(s)
Publication
2011.
Summary/Abstract
China operated an urbanization policy by which counties could be given city status between 1983 and 1997. The policy had substantial impacts on the new administrative entities, including more discretionary power and fiscal independence. Such "county-to-city upgrading" provided the central government with an instrument to reward localities. Using a large dataset covering all counties during 1993-1997, I show that upgrading is not an automatic procedure that endorses the high urbanization levels in existing counties. Although official guidelines for upgrading counties to cities were published, these requirements were largely ignored in practice. Instead, economic growth rate was the key factor in determining which counties obtained city status. This paper interprets the creation of county-level cities through upgrading as part of the incentive structure of Chinese local officials. The importance of both fiscal and political incentives facing the local government in promoting economic growth is highlighted.
Key Words
China
;
Economic Growth
;
Urbanization
;
Incentive Mechanism
;
Regional Competition
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