Ακαδημαϊκά Ερευνητικά Σεμινάρια στις Οικονομικές Επιστήμες, 2020-2021
Τμήμα Οικονομικών Επιστημών
Εθνικό και Καποδιστριακό Πανεπιστήμιο Αθηνών
We would like to inform you for the following research seminar:
Wednesday, May 19, 2021, 19:00-20:30
Myrto Kalouptsidi, Assistant Professor at the Department of Economics at Harvard University and the Stanley A. Marks and William H. Marks, Assistant Professor at the Radcliffe Institute for Advanced Studies.
Password (in case needed): WQmxpUPx655
Industrial policies are widely used across the world. In practice, designing and implementing these policies is a complicated task. In this paper, we assess the long-term performance of different industrial policy instruments, which include production subsidies, investment subsidies, entry subsidies, and consolidation policies. To do so, we examine a recent industrial policy in China aiming to propel the country’s shipbuilding industry to become the largest globally. Using firm-level data and a dynamic model of firm entry, exit, investment, and production, we find that (i) the policy boosted China’s domestic investment, entry, and international market share dramatically, but delivered low returns and led to fragmentation, idleness, as well as depressed world ship prices; (ii) the effectiveness of different policy instruments is mixed: production and investment subsidies can be justified by market share considerations, while entry subsidies are wasteful; (iii) counter-cyclical policies and firm-targeting can substantially reduce distortions. Our results highlight the critical role of firm heterogeneity, business cycles and firms’ cost structure in policy design.
Assoc. Professor Dimitris Kenourgios
Assist. Professor George Dotsis
Assist. Professor Frago Kourandi
Department of Economics, NKUA.