Moving Umbrella'': Bureaucratic transfers and the comovement of interregional investments in China

• 成果类型: Article
• 署名作者: Shi, Xiangyu; Xi, Tianyang; Zhang, Xiaobo; Zhang, Yifan
• 署名单位: Yale University; Peking University; CGIAR; International Food Policy Research Institute (IFPRI); Chinese University of Hong Kong
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2021.102717
• 发表日期: 2021
• 关键词: Bureaucratic transfer; Interregional investment; Comoving firms; CHINA

摘要

This paper studies the pattern of interregional investment after bureaucratic transfers across Chinese cities. Using the administrative records of business registration, we find that the transfer of a local leader between prefecture cities is associated with about 3% increase in interregional investment along the direction of transfer. The comoving firms purchase larger parcels of land and at lower prices. They also exhibit a higher likelihood of exiting when the patrons leave the office. Comoving interregional investment does not increase the probability of promotion for transferred leaders, and yet expose them to a higher risk of anticorruption prosecution. The findings highlight the importance of personal connection between firms and bureaucrats in shaping the pattern of interregional investment.