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The Effects of Democratization on Public Goods and Redistribution: Evidence from China

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  • Yang Yao
  • Monica Martinez Bravo

    ()

  • Gerard Padro i Miquel

    ()

  • Nancy Qia

    ()

Abstract

This study investigates the effects of introducing elections on public goods and redistribution in rural China. A large and unique survey was collected to document the history of political reforms and economic policies and exploit the staggered timing of the introduction of elections for causal identification. It was found that elections significantly increase public goods expenditure. The increase corresponds to demand and is paralleled by an increase in public goods provision and local taxes. IT that elections cause significant income redistribution within villages. The results support the basic assumptions of recent theories of democratization. In addition, we show that the main mechanism underlying the effect of elections is increased leader incentives.

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:5011.

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Date of creation: Jun 2012
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Handle: RePEc:ess:wpaper:id:5011

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Related research

Keywords: Elections; Institutions; Democracy; China; Rural; Political; Economic; Reforms; Taxes; Public Goods;

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. A Natural Experiment in Chinese Villages
    by missiaia in NEP-HIS blog on 2012-07-03 13:30:04
  2. Human Resources in Great Britain in the Long Run, 1871-2011
    by missiaia in NEP-HIS blog on 2012-08-24 12:34:36
  3. Human Resources in Great Britain in the Long Run, 1871-2011
    by missiaia in NEP-HIS blog on 2012-09-13 10:16:17

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