Government Subsidies and Firm-Level Markups: Impact and Mechanism

Volume: 12, Issue: 7, Pages: 2726 - 2726
Published: Mar 30, 2020
Abstract
This paper investigates the impact of government subsidies on the firm-level markups and its mechanism of action by measuring the firm-level markups based on a micro dataset of Chinese manufacturing firms from 2000 to 2007. The findings suggest that government subsidies significantly reduce the markups of Chinese firms. Moreover, there is significant heterogeneity in the negative impact of government subsidies among different types of firms....
Paper Details
Title
Government Subsidies and Firm-Level Markups: Impact and Mechanism
Published Date
Mar 30, 2020
Volume
12
Issue
7
Pages
2726 - 2726
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