How Does Industrial Policy Affect Firm Size Distribution?:Empirical Analysis Based on Resource Allocation Perspective
The mechanism of industrial policy's influence on economic operation has always been controversial.Based on the matching data of the Chinese Annual Survey of Industrial Firms(ASIF)from 1998 to 2007 and the five-year plans of provincial governments,this paper examines the mechanism of industrial policy affecting the firm size distribution from the perspective of resource allocation.The findings are as follows:(1)In the context of insufficient capital input and excessive labor input in China's firms,the implementation of industrial policy alleviates the insufficient capital input and inhibits the excessive labor input.Government subsidies,tax incentives and credit support have significantly suppressed the distortion of excessive input of labor factors,but tax incentives have not alleviated the distortion of insufficient capital input.(2)The implementation of industrial policies has generally promoted the firm size through resource allocation channels,and the effect on the large firms is more significant.The competition effect brought about by the implementation of industrial policy will eliminate some small firms,but this effect is secondary.This study provides a new perspective for understanding the mechanism of the economic impact of industrial policy.
industrial policyresource allocationfirm size distribution
NETL
NSTL
万方数据
