Promotion incentives, infrastructure construction, and industrial landscapes in China

He, Qingsong; Xu, Min; Xu, Zike; Ye, Yanmei; Shu, Xianfan; Xie, Peng; Wu, Jiayu

doi:10.1016/j.landusepol.2019.104101

Cited by 27 publications

(12 citation statements)

References 42 publications

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“…Moreover, Hu's patrons included Hu Yaobang 胡耀邦, one of the chief architects 32 Donaldson 2011. 33 See, e.g., He et al 2019;Wang, Qingyu, et al 2020. 34 Huang, Yasheng 1996Choi 2006.…”

Section: Shifting Strategiesmentioning

confidence: 99%

Shifting Strategies: The Politics of Radical Change in Provincial Development Policy in China

Donaldson¹,

Yang²

2022

The China Quarterly

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Why do provincial governments change policy, even when those policies have proven successful? This paper explores a debate regarding the determinants of provincial policy choice and the degree of discretion provinces are permitted in this area. It does so by scrutinizing the shift in Guizhou's development policy from a poverty reduction orientation to a wholehearted pursuit of economic growth, urbanization and industrialization. In contrast to those who argue that central experience, prospects for promotion or local conditions are key factors explaining policy choice, the paper concludes that Guizhou's shift in policy had more to do with the backgrounds and experiences of top provincial leaders. The result has implications for our understanding of central–local relations and local government decision making.

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“…Moreover, Hu's patrons included Hu Yaobang 胡耀邦, one of the chief architects 32 Donaldson 2011. 33 See, e.g., He et al 2019;Wang, Qingyu, et al 2020. 34 Huang, Yasheng 1996Choi 2006.…”

Section: Shifting Strategiesmentioning

confidence: 99%

Shifting Strategies: The Politics of Radical Change in Provincial Development Policy in China

Donaldson¹,

Yang²

2022

The China Quarterly

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“…Although the Chinese government has made great progress in market-oriented reform of productive factors (Gong 2018 ). Nevertheless, due to some institutional constraints, the pace of establishing integrated markets for essential productive factors still lags behind (He et al 2019 ; Yang et al 2018 ), resulting in serious factor market distortion (Ji 2020 ; Tan et al 2019 ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Local officials’ promotion pressure under China’s GDP-based promotion system may explain the overcapacity problem from the micro perspective. Although the GDP-based official promotion system is an important reason for China’s economic growth miracle (Pu and Fu 2018 ), it also causes local officials to focus on short-term economic performance for personal political promotion (He et al 2019 ), thus leading to redundant construction and excessive investment (Wu and Zhou 2018 ), and subsequently overcapacity. This problem may be particularly severe in coal cities.…”

Section: Introductionmentioning

confidence: 99%

Reducing coal overcapacity in China: a new perspective of optimizing local officials’ promotion system

Zhang

Etienne

Wang

2022

Environ Sci Pollut Res

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Reducing coal overcapacity is an important strategy to achieve carbon peak and carbon neutralization in China. Determining the drivers of coal overcapacity is the first step toward this strategy. The existing literature focuses mainly on the macro determinants of coal overcapacity. Micro factors such as local officials’ intervention motivation also plays a role, but has received less attention in the literature. Using data from 25 coal-producing provinces in China, we demonstrate that local officials’ promotion pressure under the GDP-based promotion system significantly leads to coal overcapacity. Mediation effect analysis suggests that factor market distortion is one important channel through which local officials’ promotion pressure affects overcapacity in the coal sector, and the distortion in the capital market plays a more dominant role than distortion in the labor market. To alleviate the negative effect of officials’ promotion pressure on capacity utilization rate, we build a diversified promotion system incorporating environmental indicators. Results show that when the environmental pressure index accounts for at least 50% of the weights in the diversified promotion system, the negative effect of promotion pressure disappears. Our results suggest that to reduce coal overcapacity problem, policymakers may wish to weaken the GDP-based political promotion incentive by adding environmental and ecological indicators and reducing interventions on factor allocation. Results from the present paper has implications for resource-dependent countries facing similar overcapacity problems, especially in the context of the open economy and green recovery in the post-COVID-19 period.

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“…As the government’s legal representatives, local officials play a crucial role in the region’s economic growth. Local governments can promote their economic goals through various means, such as promoting infrastructure construction, increasing public services, and adopting specific fiscal measures to affect the sustainable development of enterprises ( Earle and Gehlbach, 2015 ; Ma et al, 2018 ; He et al, 2019 ; Chen et al, 2021 ; Akhtari et al, 2022 ). Although this economic development mode dominated by government officials has created high economic growth, it has also brought many drawbacks.…”

Section: Introductionmentioning

confidence: 99%

Policy Uncertainty, Official Social Capital, and the Effective Corporate Tax Rate—Evidence From Chinese Firms

2022

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The political environment has a significant impact on the sustainable development of enterprises. This manuscript aims to investigate the effect of policy uncertainty and official social capital on enterprises’ effective tax rate (ETR) due to the change of officials. Based on the panel data from the Chinese Industrial Enterprise Database from 1998 to 2009, it is shown that the policy uncertainty caused by the change of local government officials significantly increases the ETR of enterprises. Meanwhile, municipal officials who have social ties with provincial officials in their province also tend to raise the ETR of industrial enterprises, and this tendency is more evident when the officials take office. Further research shows that the effects vary in many aspects for policy uncertainty and social capital on the ETR of enterprises. The findings of this manuscript provide support for a deeper understanding of the change in local government fiscal policies and give suggestions to strengthen political environmental governance for the sustainable development of enterprises.

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Promotion incentives, infrastructure construction, and industrial landscapes in China

Cited by 27 publications

References 42 publications

Shifting Strategies: The Politics of Radical Change in Provincial Development Policy in China

Shifting Strategies: The Politics of Radical Change in Provincial Development Policy in China

Reducing coal overcapacity in China: a new perspective of optimizing local officials’ promotion system

Policy Uncertainty, Official Social Capital, and the Effective Corporate Tax Rate—Evidence From Chinese Firms

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