Interjurisdiction political competition and green total factor productivity in China: An inverted-U relationship

Gang Jin, Kunrong Shen and Jian Li

China Economic Review, 2020, vol. 61, issue C

Abstract: Considering environmental pollution, excessive interjurisdictional competition has an adverse effect on green total factor productivity (GTFP), whereas moderate competition does not. Using a panel dataset of 278 prefectures during the 2004–2013 period, we calculate GTFP via a stochastic frontier model and find an inverse U-shaped relationship between county-level government competition and prefectural GTFP. The relationship is robust to endogeneity and alternative specifications. Mechanisms of the relationship consist of traditional input–output ratio, pollution emissions, and environmental technical progress. The spatial spillover effect of political competition is insignificant, indicating that a political promotion tournament in a prefecture is characterized by internal competition within the prefecture.

Keywords: Interjurisdictional competition; Green total factor productivity; Environmental pollution; Spatial spillover effect; Spatial lag of X model (search for similar items in EconPapers)
JEL-codes: Q55 R11 R12 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:61:y:2020:i:c:s1043951x18301287

DOI: 10.1016/j.chieco.2018.09.005

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