The Effect of Leadership Transition on Government Expenditure: Evidence from China

Juncheng Feng, Rui Hao (), Yang Li and Kezhong Zhang
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Juncheng Feng: School of Management Huazhong University of Science and Technology
Yang Li: Department of Economics and Business Kalamazoo College
Kezhong Zhang: School of Management Huazhong University of Science and Technology

Annals of Economics and Finance, 2012, vol. 13, issue 1, 91-112

Abstract: This paper examines the impact of leadership transition on government expenditure, particularly the composition of the expenditure. Using the Chinese provincial-level data during the period 1992-2006, we find that the transition of provincial leaders seems to have no significant effect on expenditure composition, either in the short run or long run. However, if the origins of provincial leaders are taken into consideration, only when they are from the central ministries, the replacement of the party secretary is associated with significant changes in the composition of government expenditure in the long run. Moreover, in comparison with other regions, the composition of government expenditure in autonomous regions is more likely to remain stable in the short run when the replacement of provincial party secretary occurs.

Keywords: Replacement of provincial leaders; Composition of government expenditure; Jingguan (search for similar items in EconPapers)
JEL-codes: D78 P26 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2012:v:13:i:1:n:3

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