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ABSTRACT Using inter-provincial trade data derived from 2003 to 2009 VAT invoices, this study employs a difference-in-differences model to assess the impact of political turnover on economic integration with the help of China’s political turnover policy. The findings indicate that political turnover strengthens trade between connected provinces.
1 Introduction The Club of Rome’s “Limits to Growth” described a picture in which humankind’s constant pursuit of economic growth and higher living standards has infinitely approached or even exceeded the carrying capacity or limits of the natural environment. Nowadays, global warming is the most serious environmental problem confronting humanity. Stern (2008) points out that the greenhouse effect might be as harmful as the Great Depression and World War.
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