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JUE insight: Political geography and the spatial allocation of economic activity: Evidence from China’s anti-corruption campaign

Filipe Campante, Rui Du, Weizeng Sun, Jianghao Wang and Siqi Zheng

Journal of Urban Economics, 2025, vol. 149, issue C

Abstract: We show evidence of how political geography directly shapes real economic outcomes by studying the spatial impact on Beijing’s restaurant sector of China’s 2012 anti-corruption campaign, which placed strict limits on lavish spending by public officials. Restaurants located closer to government offices experienced a relative decline in consumer demand. The post-campaign distribution of establishments was less spatially concentrated around government offices and had a smaller presence of high-end restaurants than before the campaign. Our results underscore the role of political geography as a potent, spatially concentrated driver of demand and its influence on the configuration of economic activities.

Keywords: Political geography; Spatial allocation; Urban amenities; China (search for similar items in EconPapers)
JEL-codes: D72 D73 R10 R12 R38 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:149:y:2025:i:c:s0094119025000622

DOI: 10.1016/j.jue.2025.103797

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