Skip to main content
Log in

Does economic performance affect officials’ turnover? Evidence from municipal government leaders in China

  • Published:
Quality & Quantity Aims and scope Submit manuscript

Abstract

As is well known, Chinese central government has full authority to determine the provincial and local officials’ turnover. However, China has not in detail interpreted the standards of officials’ promotions so far. In this paper, the latest database of city-level leaders for the period between 2002 and 2013 is utilized to investigate the influences of economic performance on party secretaries’ odds of being promoted. The estimation results by a panel multinomial logit method indicate that municipal annual GDP per capita is significantly positively associated with leaders’ chances of promotion. Specifically, the average GDP growth rates during leaders’ tenures have much higher effects. Moreover, some important factors of leaders’ personal characteristics also affect the political turnover. For instance, party secretaries’ connection with China’s Communist Youth League, political experience, educational level and professional expertise all have positive impacts on their chances of obtaining a promotion. In contrast, leaders’ ages and tenures are found to be negatively related to their promotion possibilities.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

Notes

  1. The term “administration decentralization” here refers to the redistribution of decision making authority and financial and management responsibilities among different levels of sub-central government. During the reform era, China’s central government had gradually transferred some authority and political power to provinces and lower-level government, and allowed them to make some decisions or even launch new reforms that are important to local economic development. Some scholars argued that China’s administration decentralization, although not thoroughly, contributed significant to China’s phenomenal economic performance since the reform and opening-up started in 1970 s (e.g., Montinola et al. 1995; Jin et al. 2005; Cai and Treisman 2006).

  2. The fixed-effects model calculates means for each variable and then subtracts the means; the constant and individual effects are also eliminated by this transformation eliminating unobserved heterogeneity by taking deviations from individual mean periods.

  3. The variables that hardly vary over time should thus be excluded from the model (Mierau et al. 2007).

  4. For more information on the database, please refer to http://www.hotelaah.com/liren/index.html.

  5. For the logit model, if the coefficient of one explanatory variable is estimated to be β, the increase in the odds for the dependent variable to be 1 is exp (β) − 1 once there is a marginal increase in the value of the explanatory variable. For more details, refer to Wooldridge (2016).

  6. In this paper, the classification of eastern, central and western regions is in accordance with the guidelines of the National Bureau of Statistics of China (NBS). Specifically, the eastern region includes Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Liaoning, Guangdong, Guangxi and Hainan; the central region contains Shanxi, Inner Mongolia, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei and Hunan; and the western region includes Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Ningxia, Qinghai and Xinjiang. The geological location of a city depends on the location of the province it is in.

  7. For more information, please refer to http://www.bloomberg.com/news/articles/2014-03-12/chinese-cadres-told-going-green-rivals-gdp-to-get-ahead-in-party.

References

  • Bardhan, P.: Awakening giants, feet of clay a comparative assessment of the rise of China and India. J. South Asian Dev. 1(1), 1–17 (2006)

    Article  Google Scholar 

  • Bertrand, M., Schoar, A.: Managing with style: the effect of managers on firm policies. Q. J. Econ. 118(4), 1169–1208 (2003)

    Article  Google Scholar 

  • Blanchard, O., Shleifer, A.: Federalism with and without political centralization: China versus Russia. IMF Econ. Rev. 48(1), 171–179 (2001)

    Google Scholar 

  • Bo, Z.: Chinese Provincial Leaders: Economic Performance and Political Mobility Since 1949. M. E. Sharpe, Armonk (2002)

    Google Scholar 

  • Bo, Z.: The 16th central committee of the Chinese Communist Party: formal institutions and factional groups. J. Contemp. China 13(39), 223–256 (2004)

    Article  Google Scholar 

  • Cai, H., Treisman, D.: Did government decentralization cause China’s economic miracle? World Polit. 58(04), 505–535 (2006)

    Article  Google Scholar 

  • Chamberlain, G.: Analysis of covariance with qualitative data. The Rev. Econ. Stud. 47(1), 225–238 (1980)

    Article  Google Scholar 

  • Chen, S.: From governance to institutionalization: political selection from the perspective of central-local relations in China—Past and Present (1368–2010). Department of Economics, Fudan University Working Paper (2015)

  • Choudhry, M.T., Elhorst, J.P.: Demographic transition and economic growth in China, India and Pakistan. Econ. Syst. 34(3), 218–236 (2010)

    Article  Google Scholar 

  • Chow, G.C.: Capital formation and economic growth in China. Q. J. Econ. 108(3), 809–842 (1993)

    Article  Google Scholar 

  • Chow, G.C., Li, K.W.: China’s economic growth: 1952–2010. Econ. Dev. Cult. Change 51(1), 247–256 (2002)

    Article  Google Scholar 

  • Guo, G.: Retrospective economic accountability under authoritarianism evidence from China. Polit. Res. Q. 60(3), 378–390 (2007)

    Article  Google Scholar 

  • Jang, C.L., Chang, C.P.: National income and fishery consumption: a global investigation. Econ. Res. 27(1), 15–33 (2014)

    Google Scholar 

  • Jin, H., Qian, Y., Weingast, B.R.: Regional decentralization and fiscal incentives: federalism, Chinese style. J. Public Econ. 89(9), 1719–1742 (2005)

    Article  Google Scholar 

  • Jones, B.F., Olken, B.A.: Do leaders matter? National leadership and growth since world war II. Q. J. Econ. 120(3), 835–864 (2005)

    Google Scholar 

  • Landry, P.F.: The political management of mayors in post-Deng China. Cph. J. Asian Stud. 17, 31–58 (2003)

    Google Scholar 

  • Li, C.: Reshuffling four tiers of local leaders: goals and implications. China Leadersh. Monit. 18, 1–22 (2006)

    Google Scholar 

  • Li, C., Bachman, D.: Localism, elitism, and immobilism: elite formation and social change in post-Mao China. World Polit. 42(01), 64–94 (1989)

    Article  Google Scholar 

  • Li, H., Zhou, L.A.: Political turnover and economic performance: the incentive role of personnel control in China. J. Public Econ. 89(9), 1743–1762 (2005)

    Article  Google Scholar 

  • Li, P., Lu, Y., Wang, J.: Does flattening government improve economic performance? Evidence from China. J. Dev. Econ. 123, 18–37 (2016)

    Article  Google Scholar 

  • Maskin, E., Qian, Y., Xu, C.: Incentives, information, and organizational form. Rev. Econ. Stud. 67(2), 359–378 (2000)

    Article  Google Scholar 

  • MacFarquhar, R. (ed.): The Politics of China: Sixty Years of the People’s Republic of China. Cambridge University Press, Cambridge (2011)

    Google Scholar 

  • Mierau, J. O., Jong-A-Pin, R., De Haan, J.: Do political variables affect fiscal policy adjustment decisions? New empirical evidence. Public Choice 133(3), 297–319 (2007)

    Article  Google Scholar 

  • Montinola, G., Qian, Y., Weingast, B.R.: Federalism, Chinese style: the political basis for economic success in China. World Polit. 48(01), 50–81 (1995)

    Article  Google Scholar 

  • Opper, S., Brehm, S.: Networks versus performance: political leadership promotion in China. Department of Economics, Lund University (2007)

  • Opper, S., Nee, V., Brehm, S.: Homophily in the career mobility of China’s political elite. Soc. Sci. Res. 54, 332–352 (2015)

    Article  Google Scholar 

  • Qian, Y., Weingast, B.R.: Federalism as a commitment to perserving market incentives. J. Econ. Perspect. 11(4), 83–92 (1997)

    Article  Google Scholar 

  • Qian, Y., Roland, G.: Federalism and the soft budget constraint. Am. Econ. Rev. 88(5), 1143–1162 (1998)

    Google Scholar 

  • Shambaugh, D.: Facing reality in China policy. Foreign Aff. 80, 50–64 (2001)

    Article  Google Scholar 

  • So, Y., Kuhfeld, W.F.: Multinomial logit models. In: SUGI 20 Conference Proceedings, pp. 1227–1234 (1995)

  • Sun, Z., Chang, C.P., Hao, Y.: Fiscal decentralization and China’s provincial economic growth: a panel data analysis for China’s tax sharing system. Qual. Quant. 51, 2267–2289 (2017)

    Article  Google Scholar 

  • Tyers, R.: Looking inward for transformative growth. China Econ. Rev. 29, 166–184 (2014)

    Article  Google Scholar 

  • Wang, Y., Yao, Y.: Sources of China’s economic growth 1952–1999: incorporating human capital accumulation. China Econ. Rev. 14(1), 32–52 (2003)

    Article  Google Scholar 

  • Weeks, M., Yudong Yao, J.: Provincial conditional income convergence in China, 1953–1997: a panel data approach. Econom. Rev. 22(1), 59–77 (2003)

    Article  Google Scholar 

  • Wei, Y., Liu, B., Liu, X.: Entry modes of foreign direct investment in China: a multinomial logit approach. J. Bus. Res. 58(11), 1495–1505 (2005)

    Article  Google Scholar 

  • Wooldridge, J.M.: Introductory Econometrics: A Modern Approach, 6th edn. Cengage Learning, Boston (2016)

    Google Scholar 

  • Wu, M., Chen, B.: Assignment of provincial officials based on economic performance: evidence from China. China Econ. Rev. 38, 60–75 (2016)

    Article  Google Scholar 

  • Wu, Y.: Is China’s economic growth sustainable? A productivity analysis. China Econ. Rev. 11(3), 278–296 (2000)

    Article  Google Scholar 

  • Xu, C.: The fundamental institutions of China’s reforms and development. J. Econ. Lit. 49(4), 1076–1151 (2011)

    Article  Google Scholar 

  • Xu, X., Wang, X.: Growth behavior in the appointment economy. China Econ. Q. 9(4), 1447–1466 (2010). (in Chinese)

    Google Scholar 

Download references

Acknowledgements

The authors acknowledge financial support from the National Natural Science Foundation of China (71403015, 71521002), Beijing Municipal Natural Science Foundation (9162013), and the Joint Development Program of Beijing Municipal Commission of Education.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Yu Hao.

Appendix

Appendix

See Table 8.

Table 8 Regional definition for sample cities in China

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Shi, Y., Chang, CP., Jang, CL. et al. Does economic performance affect officials’ turnover? Evidence from municipal government leaders in China. Qual Quant 52, 1873–1891 (2018). https://doi.org/10.1007/s11135-017-0573-9

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11135-017-0573-9

Keywords

JEL Classification

Navigation