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《China Economic Quarterly》 2011-02
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Innovation,Market Structure and Administrative Entry Barriers

LIN CHEN WEIPING ZHU(Jinan University)  
Using firm-level data of China's large and medium-size industrial firms for 2005 and 2006,this paper studies the effects of entry barriers on innovation.It is assumed that industries with higher shares of state ownership have higher entry barriers.The OLS regression shows that the relationship between RD and market structure is U-shaped in the high state-ownership industries.This result suggests that the Schumpeterian Hypothesis is true in the industries with high entry barriers.We also find that the relationship between RD and market structure is inverse U-shaped in the low state-ownership industries,which means the Schumpeterian Hypothesis does not apply.This paper suggests that if an empirical study on the Schumpeterian Hypothesis in China ignores the share of state ownership,the results would be insignificant or even misleading.
【Fund】: 教育部哲学社会科学研究重大课题攻关项目(08JZD0014);; 广东省文科基地重点课题(08JDXM79010);; 国家社科基金重大项目(09&ZD021);; 国家自科基金青年项目(71002086)的资助
【CateGory Index】: F425;F224
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