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Signals of clean governance: Evidence from luxury wine imports in China

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  • Dang, Jingqi
  • Liu, Cong
  • Yan, Ru

Abstract

This study investigates the impact of China’s anti-corruption and integrity-promotion campaigns on luxury wine imports using a difference-in-differences (DID) approach. By using luxury wine imports as an indirect proxy for corruption-related elite consumption, the analysis provides new evidence on how governance initiatives affect market behavior. The results show that the campaign led to a 47.4 percent decline in luxury wine imports. The estimated effect remains robust when controlling for alternative products and placebo countries. However, the impact is concentrated in the short term and fades over time, suggesting limited persistence of behavioral change.

Suggested Citation

  • Dang, Jingqi & Liu, Cong & Yan, Ru, 2025. "Signals of clean governance: Evidence from luxury wine imports in China," Economics Letters, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:ecolet:v:255:y:2025:i:c:s016517652500360x
    DOI: 10.1016/j.econlet.2025.112523
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    Keywords

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    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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