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Title: Can strengthening the local content requirements meet a government's need to raise industrial productivity and production?
Authors: 翁永和
Weng, Yungho
Contributors: 經濟系
Keywords: Local content requirements;industrial productivity;industry production;firm heterogeneity
Date: 2020-05
Issue Date: 2021-01-19 11:44:12 (UTC+8)
Abstract: By taking firm heterogeneity in productivity into account in a monopolistic competition market in a general-equilibrium model setting, this paper investigates whether a stricter local content requirements (LCRs) can increase both productivity and production in the domestic intermediate-goods industry. The result shows that stricter LCRs policy cannot simultaneously increase both. The initial level of LCRs plays an important role in policy effectiveness. If it is below a critical level, a stricter LCRs can increase production but decrease productivity; however, production decreases but productivity increases if the initial LCRs are higher than the critical level.
Relation: Journal of Applied Economics, 23:1
Data Type: article
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Appears in Collections:[經濟學系] 期刊論文

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