Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93475
Authors: 
Eberhardt, Markus
Wang, Zheng
Yu, Zhihong
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4682
Abstract: 
This paper provides the first micro-level evidence for the existence and patterns of intra-national protectionism in China. We demonstrate that drug advertising inspections are used by provincial governments to discriminate against firms from outside the province and document how the degree of discrimination varies across firms: manufacturers with closer ties to rival provinces, from provinces with lower presence in the market, and smaller firms are more likely to be targeted. Our findings confirm that giving local governments strong incentives to compete with each other exacerbates the market distortions inherent in a partially reformed economy.
Subjects: 
intra-national protectionism
drug advertising
China
JEL: 
F15
P26
L25
Document Type: 
Working Paper

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