Author: Kun Lang; Alexander Xincheng Li (Corresponding author); Shaobo Long
Abstract: Taking the implementation of a new performance management (PM) system in China during the COVID-19 as a quasi-natural experiment, this article contributes to the literature by providing theoretical analysis and empirical evidence on how local governments respond to the PM system. Using a unique dataset including 303 cities in China, the analysis finds that officials with low promotion probability perform better in epidemic control, while officials with high promotion probability perform better in economic recovery. Further tests show that the effects are more prominent after the overall epidemic is brought under control and among those elderly officials.
Keywords: performance management, local government, anticipated target, obligatory target, COVID-19
JEL classification: H11; H7; P3
Working paper: Performance Management and Its Impacts: Evidence from China’s Response to the COVID-19