256
Views
0
CrossRef citations to date
0
Altmetric
Articles

Setting local economic growth targets: does it mitigate nationwide policy uncertainty?

ORCID Icon, ORCID Icon & ORCID Icon
Pages 1059-1075 | Received 05 Dec 2022, Published online: 27 Sep 2023

REFERENCES

  • Angrist, J. D., & Pischke, J. S. (2009). Mostly harmless econometrics: An empiricist's companion. Princeton University Press.
  • Bai, C.-E., Hsieh, C.-T., & Song, Z. (2020). Special deals with Chinese characteristics. NBER Macroeconomics Annual, 34(1), 341–379. https://doi.org/10.1086/707189
  • Bailey, D., Crescenzi, R., Roller, E., Anguelovski, I., Datta, A., & Harrison, J. (2021). Regions in COVID-19 recovery. Regional Studies, 55(12), 1955–1965. https://doi.org/10.1080/00343404.2021.2003768
  • Baker, S. R., Bloom, N., & Davis, S. J. (2016). Measuring economic policy uncertainty. The Quarterly Journal of Economics, 131(4), 1593–1636. https://doi.org/10.1093/qje/qjw024
  • Bernanke, B. S. (1983). Irreversibility, uncertainty, and cyclical investment. The Quarterly Journal of Economics, 98(1), 85–106. https://doi.org/10.2307/1885568
  • Bertrand, M., Duflo, E., & Mullainathan, S. (2004). How much should we trust differences-in-differences estimates? The Quarterly Journal of Economics, 119(1), 249–275. https://doi.org/10.1162/003355304772839588
  • Bloom, N., Bond, S., & Van Reenen, J. (2007). Uncertainty and investment dynamics. Review of Economic Studies, 74(2), 391–415. https://doi.org/10.1111/j.1467-937X.2007.00426.x
  • Blume, L. (2006). Local economic policies as determinants of the local business climate: Empirical results from a cross-section analysis among East German municipalities. Regional Studies, 40(4), 321–333. https://doi.org/10.1080/00343400600725178
  • Bradley, D., Pantzalis, C., & Yuan, X. (2016). Policy risk, corporate political strategies, and the cost of debt. Journal of Corporate Finance, 40, 254–275. https://doi.org/10.1016/j.jcorpfin.2016.08.001
  • Brandt, L., Van Biesebroeck, J., & Zhang, Y. (2012). Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing. Journal of Development Economics, 97(2), 339–351. https://doi.org/10.1016/j.jdeveco.2011.02.002
  • Cai, G., Zhang, X., & Yang, H. (2022). Fiscal stress and the formation of zombie firms: Evidence from China. China Economic Review, 71, 101720. https://doi.org/10.1016/j.chieco.2021.101720
  • Cai, H., & Treisman, D. (2006). Did government decentralization cause China’s economic miracle? World Politics, 58(4), 505–535. https://doi.org/10.1353/wp.2007.0005
  • Capello, R., & Kroll, H. (2016). From theory to practice in smart specialization strategy: Emerging limits and possible future trajectories. European Planning Studies, 24(8), 1393–1406. https://doi.org/10.1080/09654313.2016.1156058
  • Carniti, E., Cerniglia, F., Longaretti, R., & Michelangeli, A. (2019). Decentralization and economic growth in Europe: For whom the bell tolls. Regional Studies, 53(6), 775–789. https://doi.org/10.1080/00343404.2018.1494382
  • Chen, J., Chen, X., Hou, Q., & Hu, M. (2021). Haste doesn’t bring success: Top-down amplification of economic growth targets and enterprise overcapacity. Journal of Corporate Finance, 70, 102059. https://doi.org/10.1016/j.jcorpfin.2021.102059
  • Christiano, L. J., Motto, R., & Rostagno, M. (2014). Risk shocks. American Economic Review, 104(1), 27–65. https://doi.org/10.1257/aer.104.1.27
  • Coase, R. H. (1988). The nature of the firm: Influence. Journal of Law, Economics, & Organization, 4(1), 33–47.
  • Cong, L. W., Gao, H., Ponticelli, J., & Yang, X. (2019). Credit allocation under economic stimulus: Evidence from China. The Review of Financial Studies, 32(9), 3412–3460. https://doi.org/10.1093/rfs/hhz008
  • Dawley, S., MacKinnon, D., & Pollock, R. (2019). Creating strategic couplings in global production networks: Regional institutions and lead firm investment in the Humber region, UK. Journal of Economic Geography, 19(4), 853–872. https://doi.org/10.1093/jeg/lbz004
  • Dell, M., Jones, B. F., & Olken, B. A. (2012). Temperature shocks and economic growth: Evidence from the last half century. American Economic Journal: Macroeconomics, 4(3), 66–95. https://doi.org/10.1257/mac.4.3.66
  • Di Porto, E., Parenti, A., Paty, S., & Abidi, Z. (2017). Local government cooperation at work: A control function approach. Journal of Economic Geography, 17(2), 435–463.
  • Dixit, A. K., & Pindyck, R. S. (1994). Investment under uncertainty. Princeton University Press.
  • Farole, T., Rodríguez-Pose, A., & Storper, M. (2011). Human geography and the institutions that underlie economic growth. Progress in Human Geography, 35(1), 58–80. https://doi.org/10.1177/0309132510372005
  • Fritsch, M., & Falck, O. (2007). New business formation by industry over space and time: A multidimensional analysis. Regional Studies, 41(2), 157–172. https://doi.org/10.1080/00343400600928301
  • Fritsch, M., & Storey, D. J. (2014). Entrepreneurship in a regional context: Historical roots, recent developments and future challenges. Regional Studies, 48(6), 939–954. https://doi.org/10.1080/00343404.2014.892574
  • Fukuyama, F. (2011). The origins of political order: From prehuman times to the French Revolution. Farrar, Straus & Giroux.
  • Gertler, M. S. (2010). Rules of the game: The place of institutions in regional economic change. Regional Studies, 44(1), 1–15. https://doi.org/10.1080/00343400903389979
  • Gorringe, P. (1987). The economic institutions of capitalism: Firms, markets and relational contracting by Oliver E. Williamson. Australian Journal of Management, 12(1), 125–143. https://doi.org/10.1177/031289628701200109
  • Greenwald, B., & Stiglitz, J. E. (1990). Macroeconomic models with equity and credit rationing. University of Chicago Press.
  • Gulen, H., & Ion, M. (2016). Policy uncertainty and corporate investment. Review of Financial Studies, 29(3), 523–564.
  • Han, J., Chen, X., & Sun, Y. (2021). Technology or institutions: Which is the source of green economic growth in Chinese cities? Sustainability, 13(19), 10934. https://doi.org/10.3390/su131910934
  • He, C., Wei, Y. D., & Xie, X. (2008). Globalization, institutional change, and industrial location: Economic transition and industrial concentration in China. Regional Studies, 42(7), 923–945. https://doi.org/10.1080/00343400701543272
  • Howell, A. (2017). Picking ‘winners’ in China: Do subsidies matter for indigenous innovation and firm productivity? China Economic Review, 44, 154–165. https://doi.org/10.1016/j.chieco.2017.04.005
  • Hsieh, C.-T., & Klenow, P. J. (2009). Misallocation and manufacturing TFP in China and India. Quarterly Journal of Economics, 124(4), 1403–1448. https://doi.org/10.1162/qjec.2009.124.4.1403
  • Huang, Y. (2008). Capitalism with Chinese characteristics: Entrepreneurship and the state. Cambridge University Press.
  • Huang, Y., & Luk, P. (2020). Measuring economic policy uncertainty in China. China Economic Review, 59, 101367. https://doi.org/10.1016/j.chieco.2019.101367
  • Jiang, W., Wang, D., & Yang, Y. (2019). Density of local cadres and regional economic performance: Evidence from China. The World Economy, 42(9), 2723–2744. https://doi.org/10.1111/twec.12792
  • Jin, H., Qian, Y., & Weingast, B. R. (2005). Regional decentralization and fiscal incentives: Federalism, Chinese style. Journal of Public Economics, 89(9–10), 1719–1742. https://doi.org/10.1016/j.jpubeco.2004.11.008
  • Johnson, P. S., & Cathcart, D. G. (1979). New manufacturing firms and regional development: Some evidence from the northern region. Regional Studies, 13(3), 269–280. https://doi.org/10.1080/09595237900185241
  • Kamal, F., & Sundaram, A. (2019). Do institutions determine economic geography? Evidence from the concentration of foreign suppliers. Journal of Urban Economics, 110, 89–101. https://doi.org/10.1016/j.jue.2019.02.001
  • Ketels, C. (2017). Upgrading regional competitiveness: What role for regional governments? In R. Huggins, & P. Thompson (Eds.), Handbook of regions and competitiveness (pp. 501–517). Edward Elgar.
  • Krugman, P. R. (1996). Making sense of the competitiveness debate. Oxford Review of Economic Policy, 12(3), 17–25. https://doi.org/10.1093/oxrep/12.3.17
  • Kyriacou, A. P., Muinelo-Gallo, L., & Roca-Sagalés, O. (2017). Regional inequalities, fiscal decentralization and government quality. Regional Studies, 51(6), 945–957. https://doi.org/10.1080/00343404.2016.1150992
  • Lago, I., & Blais, A. (2020). Decentralization and electoral swings. Regional Studies, 54(7), 907–918. https://doi.org/10.1080/00343404.2019.1577960
  • Lee, P. K. (1998). Local economic protectionism in China’s economic reform. Development Policy Review, 16(3), 281–303. https://doi.org/10.1111/1467-7679.00065
  • Lee, S. (2022). Banking infrastructure and the paycheck protection program during the COVID-19 pandemic. Regional Studies, 57(1), 84–96.
  • Lewis, B. D. (2017). Local government spending and service delivery in Indonesia: The perverse effects of substantial fiscal resources. Regional Studies, 51(11), 1695–1707. https://doi.org/10.1080/00343404.2016.1216957
  • Li, H., & Zhou, L.-A. (2005). Political turnover and economic performance: The incentive role of personnel control in China. Journal of Public Economics, 89(9–10), 1743–1762. https://doi.org/10.1016/j.jpubeco.2004.06.009
  • Li, S., Chen, Q., & Xu, X. (2021). The experience of economic growth recovery under adverse shock – Based on the practice of economic objective management in China. Economic Research Journal, 56(07), 59–77.
  • Li, X., Liu, C., Weng, X., & Zhou, L.-A. (2019). Target setting in tournaments: Theory and evidence from China. The Economic Journal, 129(623), 2888–2915. https://doi.org/10.1093/ej/uez018
  • Li, Z., Wu, F., & Zhang, F. (2022). A multi-scalar view of urban financialization: Urban development and local government bonds in China. Regional Studies, 56(8), 1282–1294.
  • Liu, G., Hu, M., & Cheng, C. (2021). The information transfer effects of political connections on mitigating policy uncertainty: Evidence from China. Journal of Corporate Finance, 67, 101916. https://doi.org/10.1016/j.jcorpfin.2021.101916
  • Luca, D. (2021). National elections, sub-national growth: The politics of Turkey’s provincial economic dynamics under AKP rule. Journal of Economic Geography, 22(4), 829–851. https://doi.org/10.1093/jeg/lbab041
  • Ma, L. (2016). Performance feedback, government goal-setting and aspiration level adaptation: Evidence from Chinese provinces. Public Administration, 94(2), 452–471. https://doi.org/10.1111/padm.12225
  • McCann, P., Ortega-Argilés, R., Sevinc, D., & Cepeda-Zorrilla, M. (2021a). Rebalancing UK regional and industrial policy post-Brexit and post-COVID-19: Lessons learned and priorities for the future. Regional Studies, 57(6), 1113–1125.
  • McCann, P., Ortega-Argilés, R., & Yuan, P.-Y. (2021b). The COVID-19 shock in European regions. Regional Studies, 56(7), 1142–1160.
  • Nguyen, B., Mickiewicz, T., & Du, J. (2018). Local governance and business performance in Vietnam: The transaction costs’ perspective. Regional Studies, 52(4), 542–557. https://doi.org/10.1080/00343404.2017.1341625
  • Oates, W. E. (1985). Searching for leviathan: An empirical study. American Economic Review, 75(4), 748–757.
  • Pan, T., & Fan, B. (2023). Institutional pressures, policy attention, and E-government service capability: Evidence from China’s prefecture-level cities. Public Performance & Management Review, 46(2), 445–471.
  • Rafiqui, P. S. (2008). Evolving economic landscapes: Why new institutional economics matters for economic geography. Journal of Economic Geography, 9(3), 329–353. https://doi.org/10.1093/jeg/lbn050
  • Rodrik, D. (1991). Policy uncertainty and private investment in developing countries. Journal of Development Economics, 36(2), 229–242. https://doi.org/10.1016/0304-3878(91)90034-S
  • Rodríguez-Pose, A. (2013). Do institutions matter for regional development? Regional Studies, 47(7), 1034–1047. https://doi.org/10.1080/00343404.2012.748978
  • Rodríguez-Pose, A., & Ezcurra, R. (2009). Does decentralization matter for regional disparities? A cross-country analysis. Journal of Economic Geography, 10(5), 619–644. https://doi.org/10.1093/jeg/lbp049
  • Rodríguez-Pose, A., & Zhang, M. (2019). Government institutions and the dynamics of urban growth in China. Journal of Regional Science, 59(4), 633–668. https://doi.org/10.1111/jors.12435
  • Rodríguez-Pose, A., & Zhang, M. (2020). The cost of weak institutions for innovation in China. Technological Forecasting and Social Change, 153, 119937. https://doi.org/10.1016/j.techfore.2020.119937
  • Song, Z., Storesletten, K., & Zilibotti, F. (2011). Growing like China. American Economic Review, 101(1), 196–233. https://doi.org/10.1257/aer.101.1.196
  • Storper, M. (2010). Why do regions develop and change? The challenge for geography and economics. Journal of Economic Geography, 11(2), 333–346. https://doi.org/10.1093/jeg/lbq033
  • Tomaney, J. (2014). Region and place I: Institutions. Progress in Human Geography, 38(1), 131–140. https://doi.org/10.1177/0309132513493385
  • Tselios, V. (2022). Does political decentralization affect income inequality? The role of governance quality. Regional Studies, 57(5), 829–843.
  • Wang, H., Rodríguez-Pose, A., & Lee, N. (2021). The long shadow of history in China: Regional governance reform and Chinese territorial inequality. Applied Geography, 134, 102525. https://doi.org/10.1016/j.apgeog.2021.102525
  • Weingast, B. R. (1995). The economic role of political institutions: Market-preserving federalism and economic development. Journal of Law, Economics, and Organization, 11(1), 1–31.
  • Williamson, O. E. (2000). The new institutional economics: Taking stock, looking ahead. Journal of Economic Literature, 38(3), 595–613. https://doi.org/10.1257/jel.38.3.595
  • Xu, C. (2011). The fundamental institutions of China’s reforms and development. Journal of Economic Literature, 49(4), 1076–1151. https://doi.org/10.1257/jel.49.4.1076
  • Yao, Y., & Zhang, M. (2015). Subnational leaders and economic growth: Evidence from Chinese cities. Journal of Economic Growth, 20(4), 405–436. https://doi.org/10.1007/s10887-015-9116-1
  • Yu, J., Zhou, L.-A., & Zhu, G. (2016). Strategic interaction in political competition: Evidence from spatial effects across Chinese cities. Regional Science and Urban Economics, 57, 23–37. https://doi.org/10.1016/j.regsciurbeco.2015.12.003

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.