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BIMSA Digital Economy Lab Seminar
Decoding Industrial Policy: Spatial Dynamics through a General Equilibrium Lens
Decoding Industrial Policy: Spatial Dynamics through a General Equilibrium Lens
Organizers
Speaker
Time
Monday, December 30, 2024 3:20 PM - 4:20 PM
Venue
A3-2-303
Online
Zoom 230 432 7880
(BIMSA)
Abstract
This study explores the evolution of industrial policies in China and their implications for the welfare of firms and residents. We employ a dynamic general equilibrium model that integrates spatial dimensions and inter-industry production networks to elucidate the mechanisms through which industrial policies affect various economic sectors, effectively addressing the endogeneity issues prevalent in prior research. While much of the existing literature simplifies "industrial policy" to mere subsidies, this study utilizes advanced large language models for a nuanced analysis of policy texts, enabling the construction of a comprehensive dataset that includes various policy instruments. Our findings provide critical insights for the formulation of more effective industrial policies, ultimately aimed at enhancing the overall welfare of the Chinese economy.
Speaker Intro
Runheng Li is a Ph.D Candidate in the Department of Applied Economics at the Guanghua School of Management, Peking University. His research interests focus on regional economics, international trade, and public finance.