How Can Local Governments Cope with Economic Policy Uncertainty from the Central Government: A Network Perspective
Hao Ren;
Abstract:
Policy uncertainty from higher levels of government is an important challenge for local governments' effectiveness. Based on organizational theory, this paper proposes that forming inter-governmental networks is a strategic choice for local governments coping with central government economic policy uncertainty. I empirically test this by using 2005—2019 data on provincial party secretary off-site visits as a proxy for inter-governmental networks. The results show:(1) Central government economic policy uncertainty significantly increases the frequency of provincial party secretaries' off-site visits;(2) Local governments' choices for coping with uncertainty are heterogeneous. Local governments without horizontal inter-governmental ties and with stronger governance capabilities are more likely to strengthen their network connections with other local governments to address central government economic policy uncertainty;(3) Provincial party secretaries' off-site visit positively moderate the relationship between economic policy uncertainty and firm innovation, demonstrating the effectiveness of intergovernmental networks in coping with uncertainty.
Key Words:
Foundation: 国家自然科学基金青年项目“地方政府间非正式合作对国内市场一体化的影响:因果识别、机制分析与对策研究”(项目编号:72104074)的资助
Authors: Hao Ren;
References:
- 顾夏铭,陈勇民,潘士远.2018.经济政策不确定性与创新——基于我国上市公司的实证分析[J].经济研究,53(2):109-123.Gu X M,Chen Y M,Pan S Y.2018.Economic Policy Uncertainty and Innovation:Evidence from Listed Companies in China[J].Economic Research Journal,53(2):109-123.(in Chinese)
- 李力行,聂卓,席天扬.2022.多维度治理与国家能力:增值税征管和企业排污的视角[J].世界经济,45(6):112-135.Li L X,Nie Z,Xi T Y.2022.Multi-Dimensional Governance and State Capacity:Evidence from Value-Added Tax Enforcement and Pollution Emissions[J].The Journal of World Economy,45(6):112-135.(in Chinese)
- 李增福,陈俊杰,连玉君,等.2022.经济政策不确定性与企业短债长用[J].管理世界,38(1):77-89,143,90-101.Li Z F,Chen J J,Lian Y J,et al.2022.Economic Policy Uncertainty and Corporate Short-term Debt for Long-term Use[J].Journal of Management World,38(1):77-89,143,90-101.(in Chinese)
- 卢圣华,汪晖.2020.政企网络关系、企业资源获取与经济效率——来自本地晋升官员离任的经验证据[J].经济管理,42(10):5-22.Lu S H,Wang H.2020.Government-enterprises Networks,Enterprise Resource Accessibility and Economic Efficiency:Evidence from the Departure of Local Officials[J].Business Management Journal,42(10):5-22.(in Chinese)
- 毛其淋,许家云.2018.贸易政策不确定性与企业储蓄行为——基于中国加入WTO的准自然实验[J].管理世界,34(5):10-27,62,179.Mao Q L,Xu J Y.2018.Trade Policy Uncertainty and Firm Saving Behavior:A Quasi-Natural Experiment Study Based on China's WTO Accession[J].Journal of Management World,38(1):77-89,143,90-101.(in Chinese)
- 聂辉华,江艇,张雨潇,等.2016.我国僵尸企业的现状、原因与对策[J].宏观经济管理,(9):63-68+88.Nie H N,Jiang T,Zhang Y X,et al.2016.The Status Quo,Causes and Countermeasures of Zombie Enterprises in China[J].Macroeconomy Management,2016(9):63-68,88.(in Chinese)
- 任皓.2020.府际交流网络与区域间市场分割——来自省级政府“一把手”异地考察交流的证据[J].公共管理与政策评论,(3):80-93.Ren H.2020.Intergovernmental Networks and Market Segmentation:Evidence from Provincial Party Secretary's Offsite Visits[J].Public Administration and Policy Review,(3):80-93.(in Chinese)
- 宋凌云,王贤彬,徐现祥.2013.地方官员引领产业结构变动[J].经济学(季刊),12(1):71-92.Song L Y,Wang X B,Xu X X.2013.Local Officials Induce Structural Change[J].China Economic Quarterly,12(1):71-92.(in Chinese)
- 周黎安.2018.“官场+市场”与中国增长故事[J].社会,38(2):1-45.Zhou L A.2018.“Bureaucratic & Economic Markets” and China's Growth Story[J].Chinese Journal of Sociology,38(2):1-45.(in Chinese)
- An H,Chen Y,Luo D,et al.2016.Political uncertainty and corporate investment:Evidence from China[J].Journal of Corporate Finance,36:174-189.
- Andrew S A,Carr J B.2013.Mitigating uncertainty and risk in planning for regional preparedness:The role of bonding and bridging relationships[J].Urban studies,50(4):709-724.
- Andrews R.2008.Perceived environmental uncertainty in public organizations:An empirical exploration[J].Public Performance & Management Review,32(1):25-50.
- Baker S R,Bloom N,Davis S J.2016.Measuring economic policy uncertainty[J].The Quarterly Journal of Economics,131(4):1593-1636.
- Chen Y,Chen D,Wang W,et al.2018.Political uncertainty and firms' information environment:Evidence from China[J].Journal of Accounting and Public Policy,37(1):39-64.
- Davis S J,Liu D,Sheng X S.2019.Economic policy uncertainty in China since 1949:The view from mainland newspapers[J].In Fourth Annual IMF-Atlanta Fed Research Workshop on China's Economy Atlanta (Vol.19).
- DeMartino G,Grabel I,Scoones I.2024.Economics for an uncertain world[J].World Development,173:106426.
- Desmarais B A,Moscardelli V G,Schaffner B F,et al.2015.Measuring legislative collaboration:The Senate press events network.Social Networks,40:43-54.
- Fischer M.2015.Collaboration patterns,external shocks and uncertainty:Swiss nuclear energy politics before and after Fukushima[J].Energy Policy,86:520-528.
- Fisman R,Shi J,Wang Y,et al.2020.Social ties and the selection of China's political elite[J].American Economic Review,110(6):1752-1781.
- Frankel A,Kamenica E.2019.Quantifying information and uncertainty[J].American Economic Review,109(10):3650-3680.
- Füglister K.2012.Where does learning take place?The role of intergovernmental cooperation in policy diffusion[J].European Journal of Political Research,51(3):316-349.
- Fuss S,Johansson D J,Szolgayova J,et al.2009.Impact of climate policy uncertainty on the adoption of electricity generating technologies[J].Energy Policy,37(2):733-743.
- Gibb J,Sune A,Albers S.2017.Network learning:Episodes of interorganizational learning towards a collective performance goal[J].European Management Journal,35(1):15-25.
- Gulen H,Ion M.2016.Policy uncertainty and corporate investment[J].The Review of Financial Studies,29(3):523-564.
- Harbers I.2015.Taxation and the Unequal Reach of the State:Mapping State Capacity in E Cuador[J].Governance,28(3):373-391.
- He F,Ma Y,Zhang X.2020.How does economic policy uncertainty affect corporate Innovation?—Evidence from China listed companies[J].International Review of Economics & Finance,67:225-239.
- Heilmann S.2008.Policy experimentation in China's economic rise[J].Studies in Comparative International Development,43(1):1-26.
- Heilmann S.2009.Maximum tinkering under uncertainty:unorthodox lessons from China[J].Modern China,35(4):450-462.
- Howlett M,Ramesh M,Wu X.2015.Understanding the persistence of policy failures:The role of politics,governance and uncertainty[J].Public Policy and Administration,30(3-4):209-220.
- Huang Y,Luk P.2020.Measuring economic policy uncertainty in China[J].China Economic Review,59:101367.
- Jiang J.2018.Making bureaucracy work:patronage networks,performance incentives,and economic development in China[J].American Journal of Political Science,62(4):982-999.
- Jiang J,Mei Y.2020.Mandarins make markets:Leadership rotations and inter-provincial trade in China[J].Journal of Development Economics,147:102524.
- Kahn M E,Sun W,Wu J,et al.2021.Do political connections help or hinder urban economic growth?Evidence from 1,400 industrial parks in China[J].Journal of Urban Economics,121:103289.
- Kenyon T,Naoi M.2010.Policy uncertainty in hybrid regimes:Evidence from firm-level surveys[J].Comparative Political Studies,43(4),486-510.
- Lee Y,Lee I W,Feiock R C.2012.Interorganizational collaboration networks in economic development policy:An exponential random graph model analysis[J].Policy Studies Journal,40(3):547-573.
- LeRoux K,Brandenburger P W,Pandey S K.2010.Interlocal service cooperation in US cities:A social network explanation[J].Public Administration Review,70(2):268-278
- Lou Z,Chen S,Yin W,et al.2022.Economic policy uncertainty and firm innovation:Evidence from a risk-taking perspective[J].International Review of Economics & Finance,77:78-96.
- Montinola G,Qian Y,Weingast B R.1995.Federalism,Chinese style:The political basis for economic success in China[J].World Politics,48(1):50-81.
- Nguyen N H,Phan H V.2017.Policy uncertainty and mergers and acquisitions[J].Journal of Financial and Quantitative Analysis,52(2):613-644.
- Ren H,Zhou L,Gao Y.2024.Policy Tourism and Economic Collaboration Among Local Governments:A Nonparametric Matching Model[J].Public Performance & Management Review,47(2):476-504.
- Supachart W.2019.The Economic Policy Uncertainty in China,the United States,and Europe:The Empirical Impact on Chinese Stock Markets[J].Applied Economics and Finance,6(5):131-144.
- Turrini A,Cristofoli D,Frosini F,et al.2010.Networking literature about determinants of network effectiveness[J].Public Administration,88(2):528-550.
- Walder A G.1995.Local governments as industrial firms:An organizational analysis of China's transitional economy[J].American Journal of Sociology,101(2):263-301.
- Wen Q,Zhang T.2022.Economic policy uncertainty and industrial pollution:The role of environmental supervision by local governments[J].China Economic Review,71:101723.
- Xu Z.2020.Economic policy uncertainty,cost of capital,and corporate innovation[J].Journal of Banking & Finance,111:105698.
- Zhan J V,Qin S.2017.The art of political ambiguity:Top-down intergovernmental information asymmetry in China[J].Journal of Chinese Governance,2(2):149-168.
- Zhu X,Meng T.2020.Geographical leadership mobility and policy isomorphism:Narrowing the regional inequality of social spending in China[J].Policy Studies Journal,48(3):806-832.
- (1)本文的研究对象为全国31个省级行政区划单位(不包括港澳台)。为了便于表述,省委书记、直辖市市委书记以及自治区党委书记统称为省委书记。
- (2)“不确定性”关键词包括“不确定、不明确、不明朗、未明、难料、难以预计、难以估计、难以预测、难以预料、未知”;“经济”关键词包括“经济、商业”;“政策”关键词包括“财政、货币、证监会、银保监会、财政部、人民银行、国家发展和改革委员会、开放、改革、商务部、法律、法规、税收、国债、政府债务、央行、外经贸、关税、财政赤字”。
- (3)主要包括2010年上海世博会期间各省省委书记赴上海出席的本省活动周仪式。
- (4)主要包括四类年度多边会谈,即长三角地区领导人会谈、中部六省区领导人参与到中部论坛、东北四省区合作行政首长联席会以及泛珠三角区域合作行政首长联席会。
- (5)限于篇幅原因,省委书记异地考察网络图没有展示,如有需要可以向作者索取。
- (6)772次省委书记府际交流共包含1519份新闻报道,其中747次考察交流活动的双边报道,25次只搜集到单边报道,限于篇幅原因词频云图没有展示,如有需要可以向作者索取。
- (7)https://www.gov.cn/xinwen/2017-07/24/content_5213043.htm。