Empirical Study On Local Officials’ Sources And Whereabouts Affects Jurisdiction Fixed Assets Investment

Chineselocal officials’political promotion mainly decided by the central government in accordance with national cadre personnel management system, which regard economic performance as main evaluation standard, so local officialsneed to promotejurisdiction to thetopineconomic growth speed competition to gain political promotion.Local officials can pull jurisdiction economic growth from supply and demand sides by increase fiscal expenditure in fixed assets and related industry construction: fixed asset investment can stimulate short-term local economic growth from supply side by increase production material for community reproduction; while fixed assets’major investment,infrastructure and related industry construction, can directly stimulate aggregate community demand, but takes time accumulation to develop itsmultiplier effect, so it can stimulate long-term local economic growth from demand side.The theoretical assumptions of different sources and whereabouts local officials influence jurisdiction fixed assets investment as follows:internal promotion sourced local officials have stronger momentum to stimulate jurisdiction economic growth by influence fixed assets investment in early term of office compared withother sourced local officials; promotedlocal officials have greater possibility toprovide financial and policy support to previous jurisdiction by its personnel request compared with demotedlocal officials.Because the construction of fixed assets and its related industries needs timeaccumulation, so this study lag the fixed assets investment and its influence factors’data in1and2period.This studyuse quantitative measurement software Eviews to regress the panel data, whichcombined provincial party secretaries and governors’sources and whereabouts throughout31provinces with their jurisdiction fixed assets investment and its influence factors from2006-2010, and the result shows that:promotedeastern provincialgovernors affectsjurisdiction fixed assets investment significantly positive in2laggedperiod.