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Political Promotion and Manufacturing Firm Productivity: Evidence from Chinese Firms

Author

Listed:
  • Long Wang

    (China Institute for Educational Finance Research, Peking University, Beijing, China)

  • Qifeng Zhao

    (Institute of Quantitative & Technological Economics, Chinese Academy of Social Sciences, Beijing, China)

  • Wenyin Chen

    (Institute of Developing Economies, Japan External Trade Organization, Wakaba, Mihama-ku, Chiba, Japan)

Abstract

This paper aims to investigate the impact of political promotion on the productivity of manufacturing firms using the database of Chinese industrial enterprises from 1998 to 2007. We found that the political promotion of officials had a negative impact on manufacturing firm productivity, and this impact varied according to the characteristics of officials and enterprises. In addition, there was an age "ceiling effect" among Chinese municipal officials. Further research showed that the regional level of rule of law mitigated the negative effect of political promotion on the productivity of manufacturing firms. Finally, this paper makes policy recommendations for improving the promotion mechanism of officials, enhancing regional legalization, and transforming government functions.

Suggested Citation

  • Long Wang & Qifeng Zhao & Wenyin Chen, 2023. "Political Promotion and Manufacturing Firm Productivity: Evidence from Chinese Firms," Review of Economic Assessment, Anser Press, vol. 2(2), pages 1-16, August.
    • Handle: RePEc:bba:j00010:v:2:y:2023:i:2:p:1-16:d:193
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    References listed on IDEAS

    as
    1. Stephen Bond & Måns Söderbom, 2005. "Adjustment Costs and the Identification of Cobb Douglas Production Functions," Economics Papers 2005-W04, Economics Group, Nuffield College, University of Oxford.
    2. Mitra Akhtari & Diana Moreira & Laura Trucco, 2022. "Political Turnover, Bureaucratic Turnover, and the Quality of Public Services," American Economic Review, American Economic Association, vol. 112(2), pages 442-493, February.
    3. Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
    4. Keun Lee & Xudong Gao & Xibao Li, 2017. "Industrial catch-up in China: a sectoral systems of innovation perspective," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(1), pages 59-76.
    5. Stephen Bond & Måns Söderbom, 2005. "Adjustment Costs and the Identification of Cobb Douglas Production Functions," Economics Series Working Papers 2005-W04, University of Oxford, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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