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The Rise and Fall of Local Elections in China

Author

Listed:
  • Monica Martinez-Bravo
  • Gerard Padró i Miquel
  • Nancy Qian
  • Yang Yao

Abstract

We posit that autocrats introduce local elections when their bureaucratic capacity is low. Local elections exploit citizens' informational advantage in keeping local officials accountable, but they also weaken vertical control. As bureaucratic capacity increases, the autocrat limits the role of elected bodies to regain vertical control. We argue that these insights can explain the introduction of village elections in rural China and the subsequent erosion of village autonomy years later. We construct a novel dataset to document political reforms, policy outcomes, and de facto power for almost four decades. We find that the introduction of elections improves popular policies and weakens unpopular ones. Increases in regional government resources lead to loss of village autonomy, but less so in remote villages. These patterns are consistent with an organizational view of local elections within autocracies.

Suggested Citation

  • Monica Martinez-Bravo & Gerard Padró i Miquel & Nancy Qian & Yang Yao, 2022. "The Rise and Fall of Local Elections in China," American Economic Review, American Economic Association, vol. 112(9), pages 2921-2958, September.
  • Handle: RePEc:aea:aecrev:v:112:y:2022:i:9:p:2921-58
    DOI: 10.1257/aer.20181249
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    References listed on IDEAS

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    1. Jing Jin & Chunli Shen & Qian Wang & Heng-fu Zou, 2012. "Decentralization in China," CEMA Working Papers 546, China Economics and Management Academy, Central University of Finance and Economics.
    2. Anwar Shah, 2006. "Local Governance in Developing Countries," World Bank Publications - Books, The World Bank Group, number 7192.
    3. Chunli Shen & Jing Jin & Heng-fu Zou, 2012. "Fiscal Decentralization in China: History, Impact, Challenges and Next Steps," Annals of Economics and Finance, Society for AEF, vol. 13(1), pages 1-51, May.
    4. Ruixue Jia & Masayuki Kudamatsu & David Seim, 2015. "Political Selection In China: The Complementary Roles Of Connections And Performance," Journal of the European Economic Association, European Economic Association, vol. 13(4), pages 631-668, August.
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    Cited by:

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    3. Lai, Weizheng, 2024. "The effect of education on voter turnout in China's rural elections," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 230-247.
    4. Chen, Na & Yang, Huan, 2024. "From rural to urban: Clan, urbanization and trust," China Economic Review, Elsevier, vol. 85(C).
    5. Weizhen Zhan & Zhenwu You, 2024. "Factors influencing villagers’ willingness to participate in grassroots governance: evidence from the Chinese social survey," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.
    6. Olivier Marie & Thomas Post & Zihan Ye & Xiaopeng Zou, 2024. "From Two Heads to One: The Short-Run Effects of the Recentralization of Political Power in Rural China," Tinbergen Institute Discussion Papers 24-040/V, Tinbergen Institute.
    7. Guo, Jingyuan & Deng, Kent, 2024. "Laying off old guards to rebuild state capacity: Deng Xiaoping’s bloodless coup d’etat in post-Mao China, 1980-2000," Economic History Working Papers 126083, London School of Economics and Political Science, Department of Economic History.
    8. Fang, Hanming & Hou, Linke & Liu, Mingxing & Xu, Lixin Colin & Zhang, Pengfei, 2023. "Political survival, local accountability, and long-term development: Evidence from an authoritarian country," Journal of Comparative Economics, Elsevier, vol. 51(1), pages 15-40.
    9. Zhao, Da & Guo, Jingyuan & Yu, Shule & Yu, Litian, 2024. "Tradeoff between local protection and public sector performance: Lessons from judicial fiscal centralization," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 254-278.
    10. Han, Linsong & Li, Xun & Xu, Gang, 2022. "Anti-corruption and poverty alleviation: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 150-172.

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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