The Impact Of Official Tenure On Fixed Assets Investment

Since reform and opening up,China has experienced 38 years.During the time,Chinese economy has maintained a relatively fast growth level.In recent years,from the direction of Chinese officials’ governance structure to explain that phenomenon,has gradually become the consensus of many scholars.Chinese local officials did play an important role in the economic growth,investment and area infrastructure development.This paper uses the main economic data of Chinese 266 prefecture-level cities from 2000 to 2013 and 1119 mayors’ personal information to form the panel data.It discusses the influence of the prefecture-level city officials’ tenure on the fixed assets investment in those areas.Different with most existing literature explores,which said the impact of official tenure on economic growth.This article from another point of view,to study "investment" of area-fixed asset investment.It better reflects the degree of officials’ hard work.The mayor of the prefecture-level city as the backbone of Chinese officials,this research helps to understand the logic of the impact of prefecture-level city officials on economic growth,thus offer some help for policy and official incentives.The empirical results show that: First,the growth rate of investment in fixed assets shows an inverted U-type change.The critical value is the second year,and this change is more obvious in the eastern central region and after the 2008 financial crisis.While the background of the science and the background of highly educated help fixed asset investment slowed down.Second,the expectations of the city officials’ tenure are derived from “rules of thumbs”,which is the average term of officials’ tenure.Under this influence,economic growth rate was U-shaped relationship during the tenure,which shows that the officials through the term of investment in fixed assets to make a reasonable plan.It makes economic growth in the job change year more prominent to increase the chances of promotion.Finally,according to the conclusion of this paper,the paper puts forward the policy suggestion: Firstly,the officials’ term should be extended appropriately and keep stability.Secondly,it should change the mechanism of inspection form the economic index and establish the scientific cadre examination system.