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The effect of political turnover on the market integration

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  • Xuanxuan Zhang
  • Weibo Xing
  • Ming Li

Abstract

Using inter-provincial trade data derived from 2003 to 2009 VAT invoices, this study employs a difference-in-differences model to assess the impact of political turnover on economic integration with the help of China’s political turnover policy. The findings indicate that political turnover strengthens trade between connected provinces. The impact of political turnover on inter-provincial trade varies based on the administrative level (party secretaries or governors) and the turnover pattern (parallel or promotion turnover). Additionally, the effect is more pronounced between provinces with higher levels of firm trust, while, to some extent, corruption tendencies partially weaken the impact of political turnover.

Suggested Citation

  • Xuanxuan Zhang & Weibo Xing & Ming Li, 2026. "The effect of political turnover on the market integration," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 33(1), pages 109-135, January.
    • Handle: RePEc:taf:raaexx:v:33:y:2026:i:1:p:109-135
    DOI: 10.1080/16081625.2025.2521301
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