Political turnover and economic performance: The incentive role of personnel control in China

In the course of China’s remarkable economic growth since the late 1970s, local government officials have been playing an active role in building local infrastructure, encouraging local businesses and attracting foreign investment. The strong pro-business role of Chinese local officials stands in stark contrast with the rent-seeking behavior (the “grabbing hand”) of local officials in other transitional and developing countries (Krueger 1974; Frye and Shleifer 1997).