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Preliminary communication

https://doi.org/10.18045/zbefri.2017.2.375

An economic analysis of the political promotion system in China

Jiancai Pi ; School of Business, Nanjing University, Nanjing, China


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page 375-390

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Abstract

This paper mainly discusses the political promotion system in China. Specifically,
we develop a generalized analytical framework by introducing the contest success
function. On the one hand, the central government can give the optimal political
promotion benefits to local officials to incentivize them to exert desirable
developmental efforts. On the other hand, the central government can undertake a
further design of the political promotion system to motivate local officials via its
assigned incentive strengths to the corresponding group and other groups, or via
its stipulated number of comparable regions in the corresponding group. Our main
findings in terms of the local official’s assigned weight to the political benefit are
as follows. First, the individual developmental effort and the summed
developmental efforts are increasing in the local official’s assigned weight to the
political benefit. Second, the central government’s assigned incentive strength to
other groups is increasing in the local official’s assigned weight to the political
benefit. Third, the central government’s assigned incentive strength to the
corresponding group is decreasing in the local official’s assigned weight to the
political benefit. Fourth, the number of comparable regions in the corresponding
group is decreasing in the local official’s assigned weight to the political benefit.

Keywords

political promotion; China miracle; contest success function; promotion tournament model; local official

Hrčak ID:

191395

URI

https://hrcak.srce.hr/191395

Publication date:

22.12.2017.

Article data in other languages: croatian

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