Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 27, 2022 erstellt
Beschreibung:
We employ a unique dataset on Chinese firm registration to examine how hometown ties in political network affect capital allocation. We use a quasi experimental design that relies on the relocation of officials across Chinese cities. We find that hometown ties between city party secretaries increase city-dyad investment by 10% and firm registrations by 1%. We also find the effects to be stronger between distant city pairs and stronger for investment of small firms and entering firms survive for a longer time. Comparing the effects before and after the Chinese anti-corruption campaign, we provide suggestive evidence that these results reveal rent-seeking activities of officials