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Downward Accountability in Response to Collective Actions: The Political Economy of Public Goods Provision in China

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  • Li, Yuan

    ()
    (Stockholm China Economic Research Institute)

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Abstract

Will autocratic governments implement policies to satisfy the people’s demands in order to prevent large scale social unrest? This paper explores this question through quantitatively analysis of the political economy of public goods provision in Chinese provinces. I collected data on the number of labor disputes to measure collective actions. My sample includes provincial leaders whose incentives to deliver public goods can either be explained as a result of upward accountability towards the Center or downward accountability towards the citizens. The confounding factor of upward accountability is ruled out by using two-step estimation; and the reverse causality between public goods provision and collective actions is controlled by using instrumental variables. Result suggests that provincial leaders will implement policies more in favor of the citizens in response to intensified labor disputes.

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Bibliographic Info

Paper provided by Stockholm China Economic Research Institute, Stockholm School of Economics in its series Working Paper Series with number 2013-26.

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Length: 39 pages
Date of creation: 27 Aug 2013
Date of revision:
Handle: RePEc:hhs:hascer:2013-026

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Postal: Stockholm China Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-8-736 90 00
Fax: +46-8-31 81 86
Web page: http://www.hhs.se/SCERI/
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Keywords: Accountability; Collective Actions; Public Goods;

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  2. Daron Acemoglu & James A. Robinson, 2001. "A Theory of Political Transitions," American Economic Review, American Economic Association, vol. 91(4), pages 938-963, September.
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  8. Li, Hongbin & Zhou, Li-An, 2005. "Political turnover and economic performance: the incentive role of personnel control in China," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1743-1762, September.
  9. Martinez-Bravo, Monica & Padró i Miquel, Gerard & Qian, Nancy & Yao, Yang, 2011. "Do Local Elections in Non-Democracies Increase Accountability? Evidence from Rural China," CEPR Discussion Papers 8368, C.E.P.R. Discussion Papers.
  10. Ye Chen & Hongbin Li & Li-An Zhou, 2005. "Relative Performance Evaluation and the Turnover of Provincial Leaders in China," Discussion Papers 00010, Chinese University of Hong Kong, Department of Economics.
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