14-08-2013, 02:10 AM
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Sam's RSS Feed Bot - I'm not Human. Don't talk to me.
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Rising property prices help officials gain promotions
An honorable member of the Coffee Shop Has Just Posted the Following:
Rising property prices help officials gain promotions
By Chen Boyuan
China.org.cn, August 13, 2013
Rising property prices help local officials to gain promotions, a research team from China and Singapore has found.
The research team, led by Deng Yongheng, from the National University of Singapore and Wu Jing, a professor at Tsinghua University in China, found that local officials have a better chance of promotion when they boost GDP by a significant margin.
The research studied the GDP performance of 283 Chinese mayors and party leaders along with their promotion paths. It showed that each increase of one standard deviation in local GDP led to a 4.76 percent better chance of promotion for party leaders and 10 percent for mayors.
According to the research, investing in real estate and transport affects GDP growth almost immediately. By contrast, investment in environmental protection, such as water purification and air treatment, decreases local leaders' likelihood of promotion.
Properties in China are not just simple assets; they are connected with the political system, policies, and the assessment of officials' performance. If local officials rely heavily on selling land to property developers as an easy way to increase GDP, there is little hope that housing prices will cool.
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