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《Economic Research Journal》 2004-06
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The Incentive and Cooperation of Government Officials in the Political Tournaments:An Interpretation of the Prolonged Local Protectionism and Duplicative Investments in China

Li-An Zhou (Guanghua School of Management, Peking University)  
Previous studies focused on the effects of China's administrative decentralization and fiscal contracting on local economic development and the interactions across regions. This paper builds a simple model of political tournament between local officials and explores the effect of promotion incentives of local officials on the competition and cooperation between regions. Since political tournaments are characterized by the direct conflict of interests between participants, namely one officials' promotion implying its competitor's total failure, local officials under tournaments have little room for cooperation but much room for competition. This simple model contributes to enhancing our understanding of the causes underlying China's prolonged local protectionism, duplicative investments, and excessive industrial competition among regions.
【CateGory Index】: F123
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