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Growth target management and regional economic growth

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  • Xianxiang Xu
  • Yuanhua Gao

Abstract

The share of the east in national economy has decreased for the first time during the past three decades. Based on the fact that the economic growth target set by government dominates this new trend, we put forward the hypothesis that governments employ the investment growth target to manage the economic growth target. We construct a novel provincial panel data, which matches actual economic data with target data from Report on the Work of the Local Governments (2001–2013), and find that effects of the investment growth target on the economic growth target are statistically and economically significant. We also find that only after the implementation of policies for promoting regional coordinated development, which is launched by the central government in the early of 2000s and ultimately transfers resources from the east to other regions, do these effects become significant.

Suggested Citation

  • Xianxiang Xu & Yuanhua Gao, 2015. "Growth target management and regional economic growth," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(3), pages 517-534, July.
    • Handle: RePEc:taf:rjapxx:v:20:y:2015:i:3:p:517-534
    DOI: 10.1080/13547860.2015.1054172
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    2. Changfei Nie & Wen Luo & Yuan Feng & Zhi Chen, 2023. "The Impact of Economic Growth Target Constraints on Environmental Pollution: Evidence from China," IJERPH, MDPI, vol. 20(4), pages 1-23, February.
    3. Xiangyan Wang & Jinye Li & Nannan Wang, 2023. "Are Economic Growth Pressures Inhibiting Green Total Factor Productivity Growth?," Sustainability, MDPI, vol. 15(6), pages 1-23, March.
    4. Chai, Jingxia & Wu, Haitao & Hao, Yu, 2022. "Planned economic growth and controlled energy demand: How do regional growth targets affect energy consumption in China?," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    5. Ren, Meixu & Ke, Konglin & Yu, Xin & Zhao, Jinxuan, 2023. "Local governments' economic growth target pressure and bank loan loss provision: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 1-14.
    6. Jingxia Chai & Yu Hao & Haitao Wu & Yuemiao Yang, 2021. "Do constraints created by economic growth targets benefit sustainable development? Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4188-4205, December.
    7. Keliang Wang & Bin Zhao & Tianzheng Fan & Jinning Zhang, 2022. "Economic Growth Targets and Carbon Emissions: Evidence from China," IJERPH, MDPI, vol. 19(13), pages 1-16, June.
    8. Zitao Chen & Jiannan Wu & Acheng Zhang, 2022. "The characteristics of urban governance in China: Evidence from best practices in the Yangtze River Delta Region," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1834-1853, December.

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