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Identity and Luminosity
Author(s): Li Shujuan, Xu Xianxiang, Dai Tianshi
Pages: 169-
192
Year: 2016
Issue:
8
Journal: The Journal of World Economy
Keyword: identity; luminosity; economic growth;
Abstract: We test the hypothesis that identity can constrain behavior with prescriptions. Using a new dataset on 2206 counties matched with exogenous hometowns of provincial leaders and the NOAA’s luminosity as the proxy for economic growth,we conduct a difference-in-difference estimation,and find that,on average,the provincial leaders significantly increase the economic growth in their hometowns by about 8 percent. The finding is robust,and highlights that identity is one of deep-rooted factors in China’s economic growth.
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