Rule of law or rule of ties? Interregional rotation of law enforcement officials and market integration in China

Дата публикации: 21-07-2026 00:00:00

This study examines how the interregional rotation of provincial Political and Legal Affairs Commission (PLAC) secretaries affects interregional market integration in China. Using province-pair panel data from 2003 to 2015, we find that a PLAC secretary’s prior work experience in another province significantly enhances market integration between the current and previous jurisdictions. The effect strengthens with longer prior tenure, consistent with regional favoritism in judicial enforcement. This mechanism is corroborated by analysis of civil court verdicts, which show that firms from connected provinces are more likely to receive favorable rulings. No similar effects are observed for other provincial officials at the same level. Moreover, the regional-favoritism effect is significantly weaker when the PLAC secretary has formal legal education or prior central-government experience, and it diminishes markedly after the 18th National Congress of the Communist Party of China in 2012, when a sweeping anti-corruption campaign was launched.

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