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Official Mobility, Interregional Connections and Interprovincial Trade Flows

【Authors】
NIU Jing, WEI Xiujian
【WorkUnit】
Xi'an Jiaotong University, 710061.
【Abstract】

The flow of local officials in their career path has given rise to a network of inter-regional relationships that have an important impact on the trade between regions. Based on the resume information of the secretaries of the CPC municipal committees of the prefecture-level cities from 1995 to 2016, this paper uses a variety of indicators to study the connections between regions. Under the framework of the structural gravity model, the influence of official mobility on inter-provincial trade is identified. The study found that the inter-regional connections significantly promoted the trade outflow from the place of current position of the official to the place of his birth and the place of his previous position, but did not have a significant impact on the trade inflow into the place of his current position. This conclusion is still true in various robustness tests. Further analysis shows that as the degree of opening up increases, the promotion effect of official mobility on the trade between related regions will decline. These results show that local officials, under the current personnel management system, still use informal networks of relationships to take strategic actions in inter-provincial trade.

 

JEL:R12, P26, F14

【KeyWords】
Official Mobility, Inter-Provincial Trade, Interregional Connections, Gravity Model