China's anti-corruption shock and resource reallocation in the energy industry

Jing Guo, Yanan Wang and Wei Yang

Energy Economics, 2021, vol. 96, issue C

Abstract: This paper explores the impact of anti-corruption on productivity and resource reallocation in China's energy industry. Using staggered anti-corruption investigations as exogenous shocks, we construct a quasi-natural experiment to identify causality. We find that China's anti-corruption shock improves the total factor productivity (TFP) of energy firms by 2.5%, and the impact is more pronounced in state-owned enterprises (SOEs) compared to non-SOEs. The mechanisms through which anti-corruption increases SOEs' TFP is to increase investment efficiency, improve corporate governance, and increase innovation outputs. Government subsidies and financial facilities are more efficiently allocated after China's anti-corruption shock.

Keywords: China's anti-corruption shock; Total factor productivity; Resource reallocation (search for similar items in EconPapers)
JEL-codes: K4 O2 O4 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:96:y:2021:i:c:s0140988321000876

DOI: 10.1016/j.eneco.2021.105182

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