Anti-corruption, Investment and Economic Growth：An Analysis of provincial data from China

This paper investigates the impact of anti-corruption efforts on economic growth in China, emphasizing the role of investment. The analysis is based on provincial-level data and utilizes panel fixed-effect models, panel threshold models, and spatial panel models. The findings indicate that: First, anti-corruption measures significantly boost economic growth by enhancing investment. Second, the impact is more pronounced on enterprise investment than infrastructure investment, and it affects state-owned enterprises more significantly than non-state-owned ones. Third, a threshold effect is observed wherein regions with more rigorous anti-corruption enforcement experience greater economic benefits. Finally, anti-corruption initiatives could enhance economic and investment growth in neighboring regions through spatial spillover effects. These results emphasize the critical role of anti-corruption initiatives in creating a favorable environment for economic development and investment in China. JEL codes : H83, H50, O10, O40, O53, P35