Author(s)

Luyao Wang

Institute of Economics in Jinan University, Guangzhou, China.

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.

Anti-Corruption, Investment, Economic Growth

Wang, L. (2016) The Impacts of Anti-Corruption on Economic Growth in China. Modern Economy, 7, 109-117. doi: 10.4236/me.2016.72013.