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The impact of political cycle: Evidence from coalmine accidents in China

Huihua Nie, Minjie Jiang and Xianghong Wang

Journal of Comparative Economics, 2013, vol. 41, issue 4, 995-1011

Abstract: This paper examines the impact of political cycle on coalmine accidents in China. The political cycle is formed by the major local meetings of legislative bodies held every year in all provinces of China. This is because the government has a strong incentive to maintain social stability during the meetings and to focus on economic growth in other times. We test how such cycles affect coalmine fatality using monthly data at the provincial level between 2000 and 2010. We find that the number of accidents and casualties were significantly lowered during the local events of “two sessions” after controlling for other time fixed effects. The temporary reduction of accidents seemed to have been achieved by controlling production rather than by improving safety measures. The magnitude of the cycle for accidents is enlarged in provinces where media exposure is stronger and where the vice governor in charge of safety is faced with a possible extension to another term in the current post.

Keywords: Political cycle; Political business cycle; China; Coalmine accident (search for similar items in EconPapers)
JEL-codes: D82 E32 H70 L51 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:41:y:2013:i:4:p:995-1011

DOI: 10.1016/j.jce.2013.04.002

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