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摘要
Abstract
▋World Development
Volume 185, January 2025, 106798
| Accepted 1 October 2024
| Available online 9 October 2024
| Version of Record 9 October 2024.
Resources coupled with executive authority: Implications of relocating government administrative headquarters for local economic development
Jing Chen, Shenglong Liu, Xiaoming Zhang
Jing Chen
Shenglong Liu(Corresponding author) , Xiaoming Zhang
Institute for Contemporary China Studies, Tsinghua University 10084, China
行政权威与发展资源:政府行政总部搬迁对迁入地经济发展的影响
陈京 刘生龙 张晓明
Highlights
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The local officials tend to relocate administrative headquarters to empower the local economy development.
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Relocation of administrative headquarters does not show significant effect on the economic development of the original place.
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Relocation of administrative headquarters has a significant positive effect on the economic development of the recipient place.
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Relocation of the headquarters boosters the government expenditure, land prices, labor force and expedite technological advancements.
Abstract
Despite more than three decades of market-oriented reforms, the Chinese government’s administrative capacity remains potent, exerting a substantial influence on economic development. This study delved into the economic ramifications of relocating government administrative headquarters to recipient counties, employing data from Chinese prefecture-level cities spanning from 2005 to 2019. We utilized event study analysis and the difference-in-difference method to conduct our analysis. Our results unveiled a significantly positive impact of administrative headquarters relocation on economic growth in the recipient counties. This was substantiated by an average increase of 2.236 in the nighttime light index, constituting 8.5 % of the sample mean for these counties. Notably, we found that the departure of administrative headquarters had no significant effect on the economic growth of the original counties. Therefore, the overall effect of administrative headquarters relocation was positive.