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Bureaucrats, Tournament Competition, and Performance Manipulation : Evidence from Chinese Cities
Authors: --- ---
Year: 2022 Publisher: Washington, District of Colombia : The World Bank,

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Abstract

Tournament competition is viewed as motivating bureaucrats in promoting growth. This paper examines how this incentive leads to economic performance manipulation. Using data from Chinese cities, the analysis shows that performance exaggeration increases over the course of the first term of the top bureaucrat, peaking in the last year of his or her term. Winning a tournament competition is behind this performance manipulation: political rivals reinforce each other in exaggerating performance, and political competition intensifies the tendency for manipulation. Performance exaggeration leads to higher chances of promotion, but the ratchet effect (that is, better performance today leading to a higher target tomorrow) and the potential to blame predecessors induce restraint. A good local institutional environment also restrains performance manipulation.


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Relocating or Redefined : A New Perspective on Urbanization in China
Authors: --- --- --- ---
Year: 2019 Publisher: Cambridge, Mass. National Bureau of Economic Research

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China's fast economic growth over the past 40 years has been accompanied by an increasingly rapid rate of urbanization, from about 20% in the early 1980s to 60% in 2018. In addition to natural population growth, rural-urban migration is generally believed to be a dominant driving force. Motivated by a recent finding of a high housing vacancy rate in urban China, however, we find that a large share of urban population growth comes from community reclassification. These redefined migrants (from communities which were reclassified from rural to urban) accounted for 33.4% of total urban population growth from 2010 to 2015. Households in reclassified communities share similar characteristics with those from rural villages, particularly in their ownership of housing. Furthermore, we provide evidence that at the prefecture level, the size of redefined migrants is significantly related to residential land supply, and to the proportion of households holding vacant housing units, but not to the change of night-time light. These results suggest that an inaccurate account of urbanization is an important factor for the oversupply of residential housing units in China.

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