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Interjurisdiction political competition and green total factor productivity in China: An inverted-U relationship

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  • Jin, Gang
  • Shen, Kunrong
  • Li, Jian
Abstract
Considering environmental pollution, excessive interjurisdictional competition has an adverse effect on green total factor productivity (GTFP), whereas moderate competition does not. Using a panel dataset of 278 prefectures during the 2004–2013 period, we calculate GTFP via a stochastic frontier model and find an inverse U-shaped relationship between county-level government competition and prefectural GTFP. The relationship is robust to endogeneity and alternative specifications. Mechanisms of the relationship consist of traditional input–output ratio, pollution emissions, and environmental technical progress. The spatial spillover effect of political competition is insignificant, indicating that a political promotion tournament in a prefecture is characterized by internal competition within the prefecture.

Suggested Citation

  • Jin, Gang & Shen, Kunrong & Li, Jian, 2020. "Interjurisdiction political competition and green total factor productivity in China: An inverted-U relationship," China Economic Review, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:chieco:v:61:y:2020:i:c:s1043951x18301287
    DOI: 10.1016/j.chieco.2018.09.005
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    More about this item

    Keywords

    Interjurisdictional competition; Green total factor productivity; Environmental pollution; Spatial spillover effect; Spatial lag of X model;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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