28.07.2015 - 00:00:00
Research Forum Lecture by Cheryl Xiaoning Long on "Anti-corruption Campaign and Investment Growth"
Anti-corruption Campaign and Investment Growth
The DFG Graduate Research Training Group 1613 and the IN-EAST School of Advanced Studies are pleased to announce that Professor Cheryl Xiaoning Long, Cheung Kong Scholar and a member of the Oversight Group in Economics for the State Council’s Academic Degree Commission in China, is going to visit University of Duisburg-Essen. She is going to give a Research Forum lecture to which we cordially invite all interested scientists and students.
Date: July 28, 2015
Venue: LE Building, Room LE 736
Using monthly data of prefectural cities from Jan. 2013 to Aug. 2014, this paper empirically investigates how China’s recent anti-corruption campaign has impacted fixed asset investment growth. We find that the news of a government official being investigated by the CCP’s Central Commission for Discipline Inspection significantly depresses the growth of fixed asset investment with a one-month lag in the city where the official is located. On average, the investment growth rate in the impacted city is lower than other cities by about 3 percentage points. We also find that cities with better institutional environments suffer less from such news than other cities. The results are in support of the hypothesis that in the short run, intensive anti-corruption campaigns may hamper the “greasing-wheel” effects of corruption and thus depress investment growth. Yet improvements on governance quality of local governments can alleviate such short-term negative impact.
Professor Cheryl Xiaoning Long is a Cheung Kong Scholar and a member of the Oversight Group in Economics for the State Council’s Academic Degree Commission in China. She also serves as a co-editor at China Economic Review, the primary publication outlet in English for economic research on China. Professor Long obtained her Ph.D. in Economics from Washington University in St. Louis in 2001 and taught at Colgate University between 2001 and 2011. In 2011, Professor Long joined the Wang Yanan Institute for Studies in Economics (WISE) and the School of Economics at Xiamen University, where she became the chair of the Department of Economics in 2013. Professor Long’s main research interests are in law and economics, economic analysis of institutions, and economic development. Her work has been published in international journals including Journal of Law and Economics, Journal of Public Economics, Journal of International Economics, Journal of Comparative Economics, Economic Development and Cultural Change, World Development, and others, as well as top Chinese journals such as Economic Research Journal, China Economic Quarterly, Management World, and World Economy. She is also a co-author of the book "Foreign Direct Investment in China: Winners and Losers," published by World Scientific Publishing Company.