The Tenure Of Office And Regional Economy Growth

Since the reform and opening up,China has made remarkable achievements in economy,according to many economic literatures,a lot of scholars explore the growing of Chinese economic from many angle,such as technology,open policies,foreign investment and so on.Since Chinese political system is made up of centralization and decentralization,local officials play an important role in promoting economic growth.Domestic and foreign scholars have studied the relationship between Chinese provincial officials and the local economy,most of them focus on the motivation that the officials can be promoted by promoting the local economic growth,and most of those literature used the same method.This article based on the difference of each province environment since 1990,we pay close attention on the heterogeneity of the provincial officials,and use the empirical analysis to test the relationship between provincial officials and local economic growth.Since the officials' influence requires a transmission mechanism,we will not get a direction reflection on it.This paper selects the fixed assets investment as transmission mechanism,trying to analyze how the term of provincial officials can affect the economic cycle of the district by the impact of fixed asset investment.We collected the economic data of 30 provinces from 1990 to 2014,and describe the chief personal characteristics,which includes provincial Party Secretary and governor.Then we set up a simultaneous equation model through the three-stage least squares(3 sls),and find that:First.When we control the fixed effect of time and individual,the impact of tenure of provincial officials on the investment in fixed assets is characterized by inverted U type with an increasing tenure,which is a nonlinear relationship by rising and then falling.Second.Since the tenure increase,the positive impact of growth rate of fixed asset investment on the local economic growth follows the law of diminishing marginal.Third.Secretaries of the provincial Party Committee have a stronger impact on the local economy than the governors.Finally,we give some suggestions according to the empirical results.