Events

Dr. Yingyan Zhao
Assistant Professor
Department of Economics
George Washington University

Schumpeterian creative destruction is necessary for economic growth. It is the incessant product and process innovation mechanism by which new production units replace outdated ones. Thus, structural barriers to this process can become a major impediment for productivity growth and economic development. In this paper, we document how Indian institutions shape frictions to firm exit and how firms in the formal manufacturing sector respond to them. We then develop a dynamic heterogeneous firm model with entry and exit costs that will help us estimate the magnitudes of exit costs and their implications for firm development and aggregate manufacturing TFP.

This is a joint seminar organized by HKU, CUHK, City U, HKUST and Lingnan U.

Please contact Xiameng PAN at xmpan@connect.hku.hk for registration.