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How local leaders matter: Inter-provincial leadership transfers and land transactions in China

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  • Li, Yue
  • Shao, Xiang
  • Tao, Zhigang
  • Yuan, Hongjie

Abstract

We study how local leaders matter for economic growth by examining the impacts of exogenous transfers of leaders across China’s provinces on land transactions in the primary market. We find that new provincial leaders attract investment in industrial land from the provinces of their previous positions. The leaders’ impacts are greater when their freedom to deploy their business connections in the land market is greater. More importantly, we find evidence of positive impacts of land transactions on economic growth, which should bode well for the careers of the local leaders, albeit there is some evidence of rent seeking among officials especially when they are too old for further promotion.

Suggested Citation

  • Li, Yue & Shao, Xiang & Tao, Zhigang & Yuan, Hongjie, 2022. "How local leaders matter: Inter-provincial leadership transfers and land transactions in China," Journal of Comparative Economics, Elsevier, vol. 50(1), pages 196-220.
    • Handle: RePEc:eee:jcecon:v:50:y:2022:i:1:p:196-220
    DOI: 10.1016/j.jce.2021.09.002
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    Cited by:

    1. Ya Zhao & Lennon H. T. Choy & Kwong Wing Chau, 2023. "Political Circles and Land Supply for the Service and Industrial Sectors: Evidence from 284 Cities in China," Land, MDPI, vol. 12(3), pages 1-16, February.
    2. Zhuo Chen & Mingzhi Hu & Zhiyi Qiu, 2022. "Promotion Pressures of Local Leaders and Real Estate Investments: China and Leader Heterogeneity," JRFM, MDPI, vol. 15(8), pages 1-14, August.
    3. Weiguo Fan & Wei Yao & Kehan Chen, 2023. "Integrating Energy Systems Language and Emergy Approach to Simulate and Analyze the Energy Flow Process of Land Transfer," Land, MDPI, vol. 12(5), pages 1-24, May.

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    More about this item

    Keywords

    Local leaders; Business connection; Land transactions; Political rotation;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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