Show me the incentives and I will show you the outcome : a comparative study of incentives effects on local official's efforts to promote a business friendly environment in China and Russia

Abstract

In this thesis I compare the use of the positive incentives promotions and negative incentives demotions toward Russia’s regional and China’s provincial governors, in the period 20042012. Further I look at how the different use of negative and positive incentives towards the local bureaucracy, effects their efforts to promote a business friendly environment. Based on the findings in this study I argue that an important reason why China has been able to develop a more business friendly environment then Russia, can be answered by looking at the incentive structure local bureaucrats work under.