IDEAS home Printed from https://ideas.repec.org/a/spr/ecogov/v23y2022i2d10.1007_s10101-022-00276-z.html
   My bibliography  Save this article

Economic institutions and horizontal checks and balances in the Chinese bureaucratic system: evidence at the prefecture-city level

Author

Listed:
  • Yang Zhou

    (University of North Texas)

Abstract

In China, “democratic centralism” complicates horizontal and vertical bargaining among politicians. Higher-level cadres need to consider not only principal-agent (vertical) relationships but also (horizontal) relationships between lower-level politicians when making personnel appointments. Using provincial-level economic, demographic, and institutional data as well as prefecture-city-level politician-background data from 2000 to 2009, this paper investigates how economic institutions influence the degree of match between prefecture-city party chiefs and mayors. These prefecture-city-level politicians are appointed by province-level politicians, who face institutional constraints. OLS and instrumental-variable-approach results and robustness-test results suggest that more of one such constraint—economic freedom—in one province reduces the difference in biographical background and career experience between party chiefs and mayors but increases the difference in ideology.

Suggested Citation

  • Yang Zhou, 2022. "Economic institutions and horizontal checks and balances in the Chinese bureaucratic system: evidence at the prefecture-city level," Economics of Governance, Springer, vol. 23(2), pages 133-160, June.
    • Handle: RePEc:spr:ecogov:v:23:y:2022:i:2:d:10.1007_s10101-022-00276-z
    DOI: 10.1007/s10101-022-00276-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10101-022-00276-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10101-022-00276-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Qian, Yingyi & Roland, Gerard, 1998. "Federalism and the Soft Budget Constraint," American Economic Review, American Economic Association, vol. 88(5), pages 1143-1162, December.
    2. Roger D. Congleton & Yang Zhou, 2019. "A test of the institutionally-induced equilibrium hypothesis: on the limited fiscal impact of two celebrity governors," Economics of Governance, Springer, vol. 20(2), pages 103-128, June.
    3. Shih-Ying Wu & Mei-Jane Teng, 2012. "Fiscal decentralization and multinational firms’ ownership: evidence from China," Economics of Governance, Springer, vol. 13(3), pages 237-262, September.
    4. Jin, Gang & Shen, Kunrong & Li, Jian, 2020. "Interjurisdiction political competition and green total factor productivity in China: An inverted-U relationship," China Economic Review, Elsevier, vol. 61(C).
    5. Li, Hongbin & Zhou, Li-An, 2005. "Political turnover and economic performance: the incentive role of personnel control in China," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1743-1762, September.
    6. Xi, Tianyang & Yao, Yang & Zhang, Muyang, 2018. "Capability and opportunism: Evidence from city officials in China," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1046-1061.
    7. 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.
    8. Petracca, Enrico & Gallagher, Shaun, 2020. "Economic cognitive institutions," Journal of Institutional Economics, Cambridge University Press, vol. 16(6), pages 747-765, December.
    9. Li Han, 2014. "Are elections in autocracies a curse for incumbents? Evidence from Chinese villages," Public Choice, Springer, vol. 158(1), pages 221-242, January.
    10. Junyan Jiang, 2018. "Making Bureaucracy Work: Patronage Networks, Performance Incentives, and Economic Development in China," American Journal of Political Science, John Wiley & Sons, vol. 62(4), pages 982-999, October.
    11. Greif, Avner & Mokyr, Joel, 2017. "Cognitive rules, institutions, and economic growth: Douglass North and beyond," Journal of Institutional Economics, Cambridge University Press, vol. 13(1), pages 25-52, March.
    12. Lyu, Changjiang & Wang, Kemin & Zhang, Frank & Zhang, Xin, 2018. "GDP management to meet or beat growth targets," Journal of Accounting and Economics, Elsevier, vol. 66(1), pages 318-338.
    13. Shih, Victor & Adolph, Christopher & Liu, Mingxing, 2012. "Getting Ahead in the Communist Party: Explaining the Advancement of Central Committee Members in China," American Political Science Review, Cambridge University Press, vol. 106(1), pages 166-187, February.
    14. Zhou, Yang, 2020. "Horizontal “checks and balances” in the socialist regime: the party chief and mayor template," Journal of Institutional Economics, Cambridge University Press, vol. 16(1), pages 65-82, February.
    15. Yang Yao & Muyang Zhang, 2015. "Subnational leaders and economic growth: evidence from Chinese cities," Journal of Economic Growth, Springer, vol. 20(4), pages 405-436, December.
    16. Raul Magni Berton & Sophie Panel, 2017. "Strategic gerontocracy: why nondemocratic systems produce older leaders," Public Choice, Springer, vol. 171(3), pages 409-427, June.
    17. Raul Magni Berton & Sophie Panel, 2017. "Strategic gerontocracy: why nondemocratic systems produce older leaders," Post-Print hal-02023409, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Shawn Xiaoguang & Liu, Yong & Xu, Xianxiang, 2020. "Dynamics of Local Cadre Appointment in China11We are grateful to the editor Cheryl Long, and three referees for their valuable comments. Shawn Xiaoguang Chen thanks the support of Beijing Municipal Ed," China Economic Review, Elsevier, vol. 64(C).
    2. Chen, Shuo & Qiao, Xue & Zhu, Zhitao, 2021. "Chasing or cheating? Theory and evidence on China's GDP manipulation," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 657-671.
    3. Chen, Bochao & Wang, Hang & Wang, Xianbin, 2024. "Innovation Like China: Evidence from Chinese Local Officials' Promotions," China Economic Review, Elsevier, vol. 86(C).
    4. Danglun Luo & Congcong Liu & Lifan Wu, 2020. "Horizontal Networks and Economic Performance: Evidence from City Leaders in China," Social Science Quarterly, Southwestern Social Science Association, vol. 101(4), pages 1359-1373, July.
    5. Xue, Chang & Zhang, Xiaoyu, 2024. "Gloomy future, gloomy sky: Promotion incentives and pollution in China," European Journal of Political Economy, Elsevier, vol. 81(C).
    6. Tang, Pengcheng & Jiang, Qisheng & Mi, Lili, 2021. "One-vote veto: The threshold effect of environmental pollution in China's economic promotion tournament," Ecological Economics, Elsevier, vol. 185(C).
    7. Chang Xue & Xiaoyu Zhang, 2024. "Promotion prospects and policy choice: evidence from the land market in China," Public Choice, Springer, vol. 200(1), pages 119-147, July.
    8. Chen, Qianmiao & Huang, Qingyang & Liu, Chang & Wang, Peng, 2022. "Career incentives of local leaders and crisis response: A case study of COVID-19 lockdowns in China," European Journal of Political Economy, Elsevier, vol. 75(C).
    9. Shi, Xiangyu, 2024. "Anti-corruption campaign and economic growth in Chinese cities: The dichotomous mechanism of network-based political competition," European Journal of Political Economy, Elsevier, vol. 83(C).
    10. Wang, He & Yao, Yang & Zhou, Yue, 2022. "Markets price politicians: Evidence from China’s municipal bond markets," Journal of Economics and Business, Elsevier, vol. 122(C).
    11. Thomas F. Remington & Andrei A. Yakovlev & Elena Ovchinnikova & Alexander Chasovsky, 2020. "Career Trajectories Of Regional Officials: Russia And China Before And After 2012," HSE Working papers WP BRP 754/PS/2020, National Research University Higher School of Economics.
    12. Zhang, Muyang & Zhou, Guangsu & Fan, Gang, 2020. "Political Control and Economic Inequality: Evidence from Chinese Cities," China Economic Review, Elsevier, vol. 61(C).
    13. Jiang, Qisheng & Tang, Pengcheng, 2023. "All roads lead to Rome? Carbon emissions, pollutant emissions and local officials’ political promotion in China," Energy Policy, Elsevier, vol. 181(C).
    14. Xi, Tianyang & Yao, Yang & Zhang, Muyang, 2018. "Capability and opportunism: Evidence from city officials in China," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1046-1061.
    15. Huang, Zhangkai & Liu, Jinyu & Ma, Guangrong & Xu, Lixin Colin, 2024. "Political determinants of privatizations in China: A natural experiment based on politician career concerns," Journal of Corporate Finance, Elsevier, vol. 87(C).
    16. Gao, Haoyu & Ru, Hong & Tang, Dragon Yongjun, 2021. "Subnational debt of China: The politics-finance nexus," Journal of Financial Economics, Elsevier, vol. 141(3), pages 881-895.
    17. Ling, Leng & Luo, Danglun & SHE, Guoman, 2019. "Judging a book by its Cover: The influence of physical attractiveness on the promotion of regional leaders," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 1-14.
    18. Hanming Fang & Ming Li & Zenan Wu, 2022. "Tournament-Style Political Competition and Local Protectionism: Theory and Evidence from China," NBER Working Papers 30780, National Bureau of Economic Research, Inc.
    19. Wu, Mingqin & Cao, Xun, 2021. "Greening the career incentive structure for local officials in China: Does less pollution increase the chances of promotion for Chinese local leaders?," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    20. Tian, Zhihua & Hu, An & Chen, Yang & Shao, Shuai, 2023. "Local officials’ tenure and CO2 emissions in China," Energy Policy, Elsevier, vol. 173(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ecogov:v:23:y:2022:i:2:d:10.1007_s10101-022-00276-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.