Lu, Yao; Phillips, Gordon M.; Yang, Jia - National Bureau of Economic Research - 2024
We examine the rise of cloud computing and AI in China and their impacts on industry dynamics after the shock to the … cost of Internet-based computing power and services. We find that cloud computing is associated with an increase in firm … impact on entry but reduces the likelihood of exit and M&A. Firm size plays a crucial role in these dynamics: cloud computing …