Political Promotion and Manufacturing Firm Productivity: Evidence from Chinese Firms


  • Long Wang China Institute for Educational Finance Research, Peking University, Beijing, China
  • Qifeng Zhao Institute of Quantitative & Technological Economics, Chinese Academy of Social Sciences, Beijing, China
  • Wenyin Chen Institute of Developing Economies, Japan External Trade Organization, Wakaba, Mihama-ku, Chiba, Japan




Political promotion; Firm productivity; Promotion incentive; Market-oriented reform


This paper aims to investigate the impact of political promotion on the productivity of manufacturing firms using the database of Chinese industrial enterprises from 1998 to 2007. We found that the political promotion of officials had a negative impact on manufacturing firm productivity, and this impact varied according to the characteristics of officials and enterprises. In addition, there was an age "ceiling effect" among Chinese municipal officials. Further research showed that the regional level of rule of law mitigated the negative effect of political promotion on the productivity of manufacturing firms. Finally, this paper makes policy recommendations for improving the promotion mechanism of officials, enhancing regional legalization, and transforming government functions.


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How to Cite

Wang, L., Zhao, Q., & Chen, W. (2023). Political Promotion and Manufacturing Firm Productivity: Evidence from Chinese Firms. Review of Economic Assessment, 2(2), 1–16. https://doi.org/10.58567/rea02020001




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