By Tingjin Lin (auth.)

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103 Through personnel appointments, Beijing effectively restrained the provinces that were tempted to over-invest during periods of economic retrenchment. The degree of central control of provincial appointments was relatively fixed, although the scope and degree of control over local leaders evolved significantly below the provincial level. This stemmed from the fact that provincial cadres have always been appointed by the center. When push came to shove, provincial leaders could not inflict too high a cost on the center for not maximizing their interests, since doing so would raise the probability of their own dismissal.

Thus, in practice as well as in the institution of documents such as the Constitution of PRC and the Organizational Law of Local People’s Governments, the center reserves the power to define the rules for the game between the center and the provinces. Therefore, the enduring local resistance in Chinese politics could be viewed as centrally allowed or tolerated resistance. 102 Actions such as refusing to disclose important information about the locality, manipulating statistical data or retaining financial revenue owed to higher-level authorities could be observed across the country.

This study will adopt the extrinsic approach to seek which political institutions as rules matter to educational outputs, as well as the extent to which they are important for such outputs. Thus, we need to specify IT more in order to be able to test IT, and IT should be replaced by a set of scientific hypotheses about institutional effects. However, there are at least two other points that should be kept in mind. First, one must recognize that institutions are not the single important factor for outcomes.

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