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How does regional GDP manipulation affect livelihood investment?

Author

Listed:
  • Fang Fang

    (Beijing Normal University)

  • Danglun Luo

    (Sun Yat-sen University)

  • Yuexin Huang

    (Sun Yat-sen University)

  • Xin Cao

    (Beijing Normal University)

Abstract

People’s livelihood serves as the primary impetus driving all social activities. Faced with intense regional competition and stringent assessment, regional governments often resort to manipulating GDP figures. This study investigates the repercussions of such economic distortion on residents’ welfare. Our findings reveal a significant negative relationship between regional GDP manipulation and investment in livelihood improvements. This correlation is particularly pronounced during the initial phase of officials’ tenure and diminishes when officials serve in their hometowns. Moreover, we observe that the reduction in livelihood investment is exacerbated during periods of economic downturn. These conclusions contribute to the existing literature on regional GDP manipulation and livelihood investment, shedding light on the potential implications for residents’ welfare.

Suggested Citation

  • Fang Fang & Danglun Luo & Yuexin Huang & Xin Cao, 2024. "How does regional GDP manipulation affect livelihood investment?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03735-6
    DOI: 10.1057/s41599-024-03735-6
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