Chinese Journal of Sociology

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The Tournament System and the Growth of Provincial Development Zones in China: Evidence from Provinces  

 Li Guowu |: Hou Jiawei   

  1. Author 1: Li Guowu, College of Social Development, Central University of Finance and Economics; Author 2: Hou Jiawei,College of Social Development,Central University of Finance and Economics
  • Online:2011-03-21 Published:2011-03-21
  • Contact: Li Guowu, College of Social Development, Central University of Finance and Economics. E-mail: leeguowu@126. com
  • About author:Author 1: Li Guowu, College of Social Development, Central University of Finance and Economics; Author 2: Hou Jiawei,College of Social Development,Central University of Finance and Economics
  • Supported by:

    The research was funded by “211 Project” for Central University of Finance and Economics (the 3rd phase)

Abstract:

Establishing Development Zones is an important means by which local governments in China partake in promoting the growth of local economy. In the context of “competing for growth,” there was a sharp increase in the number of Provincial Development Zones (PDZs) from 1984 to 2006 although there were obvious regional differences and temporal fluctuations. Drawing on the provincial data, this study examined how three factors, namely, budget constraints, interprovincial competitions, and national institutional changes, had influenced the growth of PDZs using the “tournament system” theory. It was found that, although the level of the regional economic development did serve as an important budget constraint to the establishment of PDZs, it was the national institutional changes that had greater influences because establishing a PDZ was not a natural process constrained by its own provincial resources. To be more specific, the national institutional changes caused temporal fluctuations in the growth of PDZs (within the province) on the one hand and regional differences in the numbers of PDZs (between provinces) on the other hand. In spite of the general increases in the numbers of PDZs in all provinces, our measurements of the yearly increments of provincial PDZs did not show any significant sign of interprovincial competitions. It requires more empirical studies to test the applicability of the tournament system theory.

Key words: local government  , the tournament system theory  ,   centralizationdecentralization  ,   institutional change  ,  Provincial Development Zones