Phelps compares China's decision to refrain from support of firms facing new entrants to the West's frequent social protection of incumbents from competition

March 05, 2018

In an op-ed piece published today by Project Syndicate, Edmund Phelps points out that China, two years ago, adopted a policy to refrain from protecting incumbent enterprises from the entry of new firms with better ideas, and it has been rewarded with the revival of productivity growth. In contrast, the West frequently protects incumbent firms from competition by newcomers, and it has suffered from decades of slow productivity growth. To read the piece, click here.