TY - JOUR
T1 - Political favoritism towards resource allocation
T2 - Evidence of grants by natural science foundation in China
AU - Liu, Zihua
AU - Zhou, Sili
N1 - Publisher Copyright:
© 2021 Elsevier B.V.
PY - 2022/6
Y1 - 2022/6
N2 - We study the effect of political power on resource allocation for knowledge production dictated by central planning in a non-market system. Our empirical results suggest that, compared to non-connected scholars, political connected (PC) scholars have 15.7% more allocation granted by the national Natural Science Foundation of China (NSFC). Variations in grant allocation is related to weaker institutional environments, less reputable universities, and hard-to-value project. Additional analysis suggests that access to the NSFC fund not only benefits individual PC scholars in terms of their research quality, but also brings more high-impact publications for their affiliated institution.
AB - We study the effect of political power on resource allocation for knowledge production dictated by central planning in a non-market system. Our empirical results suggest that, compared to non-connected scholars, political connected (PC) scholars have 15.7% more allocation granted by the national Natural Science Foundation of China (NSFC). Variations in grant allocation is related to weaker institutional environments, less reputable universities, and hard-to-value project. Additional analysis suggests that access to the NSFC fund not only benefits individual PC scholars in terms of their research quality, but also brings more high-impact publications for their affiliated institution.
KW - Institutional environment
KW - Knowledge production
KW - Political favoritism
KW - Political power
KW - Resource allocation
UR - http://www.scopus.com/inward/record.url?scp=85119145203&partnerID=8YFLogxK
U2 - 10.1016/j.ememar.2021.100866
DO - 10.1016/j.ememar.2021.100866
M3 - Article
AN - SCOPUS:85119145203
SN - 1566-0141
VL - 51
JO - Emerging Markets Review
JF - Emerging Markets Review
M1 - 100866
ER -