Culture and the Performance of Government Officials

Xiaochang Yan and Yang Yao

Economic Development and Cultural Change, 2026, vol. 74, issue 3, 1105 - 1139

Abstract: In China, the southern culture is more pro–economic growth than the northern culture, and southern officials moving to northern cities (northbound officials) bring the southern culture with them. Deploying a comprehensive dataset covering all Chinese prefectural cities over 1994–2017, this empirical study finds that northbound officials significantly outperform their northern peers in growth by 1.07 percentage points. This result remains qualitatively robust when the analysis controls for the institutional environment and market development in both the officials’ assigned and home cities and their promotion incentives, ability, and experience. Further analysis shows that northbound officials invest more than their northern peers, and this advantage is not due to capital coming from northbound officials’ home cities.

Date: 2026
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