Chien and Zhao: State-Mediated Knowledge Transfer and Resource Mobility – A Case Study of China Local Government Entrepreneurship

Abstract:

This paper focuses on a new phenomenon in China: local government
entrepreneurship in constructing infrastructure and attracting
investment has been diffused from more developed to less developed
regions. We argue that this geographically diffused phenomenon is part
of a larger attempt by the Chinese Communist Party (CCP) to facilitate
advancement of less developed regions. The CCP has used a unique and centralized personnel management system to shift knowledge and resources in the interest of local economic development through betweenregion pairing assistance and inter-regional cadre transfer. This diffusion has mixed results: it accelerates infrastructure construction, investment and economic growth in less developed areas, but at the expense of increased social exclusion and environmental pollution.

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