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Pro‐social leadership under authoritarianism : Provincial leaders’ educational backgrounds and fiscal expenditure structure in China

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  • Ming Lu
  • Lijun Xia
  • Jinchuan Xiao

Abstract

Authoritarianism is regarded as being unaccountable for people's needs, but few studies have documented how authoritarian countries balance their policy goals. China is known to use a promotion system to incentivize local leaders to develop the economy, while neglecting social spending. This paper documents that more leaders having a liberal arts background have been promoted as top provincial leaders. After carefully ruling out other channels, we provide evidence that the shift of top provincial leaders’ college educational backgrounds from science/technology to liberal arts/social science has increased fiscal expenditure shares on science, education, culture and public health and cut economic construction expenditures accordingly. The finding is mainly driven by the post‐1994 period, when local leaders had stronger incentives for economic growth. This indicates that Chinese top authorities are promoting more pro‐social local leaders when providing pro‐growth incentives in general.

Suggested Citation

  • Ming Lu & Lijun Xia & Jinchuan Xiao, 2019. "Pro‐social leadership under authoritarianism : Provincial leaders’ educational backgrounds and fiscal expenditure structure in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 27(1), pages 5-30, January.
    • Handle: RePEc:bla:etrans:v:27:y:2019:i:1:p:5-30
    DOI: 10.1111/ecot.12193
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    References listed on IDEAS

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    3. Nicholas R. Lardy, 2011. "Sustaining China’s economic growth after the global financial crisis," Proceedings, Federal Reserve Bank of San Francisco, issue Nov, pages 235-239.
    4. Adi Brender & Allan Drazen, 2009. "Do Leaders Affect Government Spending Priorities?," NBER Working Papers 15368, National Bureau of Economic Research, Inc.
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