THESIS
2019
viii leaves, 55 pages : illustrations ; 30 cm
Abstract
What are the political consequences of government expropriation? And what
are the possible economic explanations for these consequences? By using land expropriation
in China frequently implemented by local governments as a natural
experiment, this paper employs a generalized difference-in-differences approach to
study the political consequences of extractive institutions. The empirical results
show that exposure to land expropriation decreases individuals' trust towards local
government officials by about 11 percent of a standard deviation. The effect on political
trust is significantly persistent. Exposure to land expropriation increases the
probability of having conflicts with local government officials by about 51 percent.
The effect on political conflict attenuates to zero...[
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What are the political consequences of government expropriation? And what
are the possible economic explanations for these consequences? By using land expropriation
in China frequently implemented by local governments as a natural
experiment, this paper employs a generalized difference-in-differences approach to
study the political consequences of extractive institutions. The empirical results
show that exposure to land expropriation decreases individuals' trust towards local
government officials by about 11 percent of a standard deviation. The effect on political
trust is significantly persistent. Exposure to land expropriation increases the
probability of having conflicts with local government officials by about 51 percent.
The effect on political conflict attenuates to zero about six years after. The heterogeneous
analysis shows that the effects on both political outcomes are significant
only in corrupt regions. These results could possibly be explained by the low compensation
provided by local governments for land expropriation and the negative
impacts of land expropriation on household welfare. My findings have implications
for political inference in China.
Keywords: Land Expropriation; Political Trust; Political Conflict
JEL Codes: D74, D78, H79, O38, P26
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