School of Accountancy
Shanghai University of Finance & Economics
No. 777, Guoding Road
NBER Working Papers and Publications
|February 2013||Incentives and Outcomes: China's Environmental Policy|
with Jing Wu, Yongheng Deng, Randall Morck, Bernard Yeung: w18754
In generating fast economic growth, China is also generating growing concern about its environmental record. Using 2000-2009 data, we find that, while spending on environmental infrastructure has visible positive environmental impact, city spending is strongly tilted towards transportation infrastructure. Investment in transportation infrastructure correlates strongly with both real GDP growth, a measure of tangible economic growth relevant to city-level Party and government cadres' promotion odds, and with land prices, which affect city governments' revenues from land lease sales. In contrast, city governments' spending on environmental improvements is at best uncorrelated with cadres' promotion odds, and is uncorrelated with local GDP growth and land prices. These findings suggest that, ...
Published: Incentives and Outcomes: China's Environmental Policy Jing Wu, Yongheng Deng, Jun Huang, Randall Morck and Bernard Yin Yeung The Center on Capitalism and Society Journal Volume 9, Issue 1, April 2014
|January 2009||Vertical Integration, Institutional Determinants and Impact: Evidence from China|
with Joseph P.H. Fan, Randall Morck, Bernard Yeung: w14650
Where legal systems and market forces enforce contracts inadequately, vertical integration can circumvent these transaction difficulties. But, such environments often also feature highly interventionist government, and even corruption. Vertical integration might then enhance returns to political rent-seeking aimed at securing and extending market power. Thus, where political rent seeking is minimal, vertical integration should add to firm value and economy performance; but where political rent seeking is substantial, firm value might rise as economy performance decays. China offers a suitable background for empirical examination of these issues because her legal and market institutions are generally weak, but nonetheless exhibit substantial province-level variation. Vertical integratio...