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China's anti-corruption shock and resource reallocation in the energy industry

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  • Guo, Jing
  • Wang, Yanan
  • Yang, Wei

Abstract

This paper explores the impact of anti-corruption on productivity and resource reallocation in China's energy industry. Using staggered anti-corruption investigations as exogenous shocks, we construct a quasi-natural experiment to identify causality. We find that China's anti-corruption shock improves the total factor productivity (TFP) of energy firms by 2.5%, and the impact is more pronounced in state-owned enterprises (SOEs) compared to non-SOEs. The mechanisms through which anti-corruption increases SOEs' TFP is to increase investment efficiency, improve corporate governance, and increase innovation outputs. Government subsidies and financial facilities are more efficiently allocated after China's anti-corruption shock.

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  • Guo, Jing & Wang, Yanan & Yang, Wei, 2021. "China's anti-corruption shock and resource reallocation in the energy industry," Energy Economics, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:eneeco:v:96:y:2021:i:c:s0140988321000876
    DOI: 10.1016/j.eneco.2021.105182
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    More about this item

    Keywords

    China's anti-corruption shock; Total factor productivity; Resource reallocation;
    All these keywords.

    JEL classification:

    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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