000K  utf8
1100  $c2023
1500  eng
2050  urn:nbn:de:gbv:8:3-2023-00833-8
2051  10.1111/caje.12644
3000  Du, Jun
3010  Girma, Sourafel
3010  Görg, Holger
3010  Stepanok, Ignat
4000  Who wins and who loses from state subsidies?  [Du, Jun]
4209  China is perceived to rely on subsidizing firms in targeted industries to improve their performance and stay competitive. We implement an approach that allows for the joint estimation of direct and indirect effects of subsidies on subsidized and non-subsidized firms. We find that firms that receive subsidies experience a boost in productivity. However, our approach highlights the importance of indirect effects, which are generally neglected in the literature. We find that, in general but not always, non-subsidized firms experience reductions in their productivity growth if they operate in a cluster where other firms are subsidized. These negative externalities depend on the share of firms that receive subsidies in the cluster. Aggregating direct and indirect effects into a (weighted) total effect shows that this negative indirect effect tends to dominate. We interpret our results in light of a simple heterogenous firm model, which highlights that subsidization in a competitive environment of firms may potentially harm non-subsidized firms.
4950  https://doi.org/10.1111/caje.12644$xR$3Volltext$534
4950  https://nbn-resolving.org/urn:nbn:de:gbv:8:3-2023-00833-8$xR$3Volltext$534
4961  https://macau.uni-kiel.de/receive/macau_mods_00004162
5051  330
5550  competitive environment
5550  firm model
5550  non-subsidized firms
5550  subsidization