 Political career concerns and bank lending in ChinaYunlin Tian, Xiaofei Pan, Baoqing Pang and Yiping Wu Emerging Markets Review, 2023, vol. 54, issue C Abstract: This study examines how politician's career concerns affect the bank loans using a sample of bank branches at the county-level in China. We use politician tenure to measure an important dimension of the politician incentives to intervene in the local economy, which is determined by their career concerns about perceived promotion probability. We find that there is a curvilinear relationship between politician tenure and bank loans (i.e., reversed U-shape). We also construct a promotion pressure index and document a positive relationship between this promotion index and bank loans. These results are more significant for banks located in counties with underdeveloped institutions or weak government capacity, and those with political ties. These results support the view that politicians have strong incentives to utilize local banks to promote local economic growth if it is also consistent with their private goals, especially in the environment with significant government ownership in banking systems. Keywords: Government intervention; Politician tenure; Career concern; Bank loans; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:54:y:2023:i:c:s1566014123000055 DOI: 10.1016/j.ememar.2023.101000 Access Statistics for this article Emerging Markets Review is currently edited by Jonathan A. Batten More articles in Emerging Markets Review from Elsevier |
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