Promotion Pressures of Local Leaders and Real Estate Investments: China and Leader Heterogeneity

Chinese local officials have strong incentives to stimulate economic growth in the pursuit of promotion. However, connection between promotion pressure and investment real estate market has not been rigorously explored. By using panel data leaders (municipal party secretaries or mayors) from 2002 2010, this paper investigates correlations leaders’ pressures investments. Empirical results show that are significantly positively correlated with market. Furthermore, positive effect on development is significant if leader young born locally, whereas insignificant older a native. Our findings provide new evidence how may strategically intervene activities.