TITLE:
The Impacts of Anti-Corruption on Economic Growth in China
AUTHORS:
Luyao Wang
KEYWORDS:
Anti-Corruption, Investment, Economic Growth
JOURNAL NAME:
Modern Economy,
Vol.7 No.2,
February
16,
2016
ABSTRACT: Exploiting quarterly
data of 31 provinces in China from the 18th National Congress of the Communist
Party of China to the end of 2014, this paper empirically analyzes how the
anti-corruption of central government affects economic growth. We find that the
news of a bureaucrat investigated by the CCP’S Central Commission for
Discipline Inspection significantly curbs the economic growth in provincial
level. On average, the quarterly economic growth decreases by approximately 0.1
percentage when there is one more government official ranking higher than vice
department of provincial level (included), and this effect is immediate and
last shortly. Furthermore, we find that anti-corruption
campaign depresses economic growth by slowing down investment growth.
Therefore, we make a conclusion that the anti-corruption makes an adverse
influence on investment, so that the economic growth declines.