Discussion of “The Discussion of “The Determinants of Media Determinants of Media

Capture in China” Capture in China” (by Bei Qin, (by Bei Qin, Yanhui Wu and David Strömberg)Yanhui Wu and David Strömberg)

Maria Petrova, New Economic Maria Petrova, New Economic SchoolSchool

October 28October 28thth, Moscow, Moscow

SummarySummaryPaper looks at coverage of 2000+ Paper looks at coverage of 2000+ Chinese newspapers in 1998-2001Chinese newspapers in 1998-2001

Leader mentions, corruption, disastersLeader mentions, corruption, disasters

Question: How organizational structure Question: How organizational structure of newspaper financing affects coverage?of newspaper financing affects coverage?

Financial independence (direct/indirect Financial independence (direct/indirect control), ownership by subsidiarycontrol), ownership by subsidiary

Results: more financial independence Results: more financial independence => less pro-government stories, Xinhua => less pro-government stories, Xinhua mentions, leader name mentions, mentions, leader name mentions, corruption coverage, disaster and corruption coverage, disaster and accident coverage.accident coverage.

Media capture in Media capture in autocracy:autocracy:

theoretical predictionstheoretical predictionsMarginal costs of production, marginal Marginal costs of production, marginal advertising revenues (Besley Prat 2006)advertising revenues (Besley Prat 2006)

Mobilization needs of government Mobilization needs of government (Gehlbach and Sonin 2010)(Gehlbach and Sonin 2010)

Importance of incentives in bureaucracy Importance of incentives in bureaucracy (Egorov et al. 2009)(Egorov et al. 2009)

Political control of local officials Political control of local officials (Lorentzen 2010)(Lorentzen 2010)

Potential omitted Potential omitted variablesvariables

Literacy ratesLiteracy rates

Characteristics of local politicians Characteristics of local politicians (mayor, CCP secretary)(mayor, CCP secretary)

Tenure, foreign experienceTenure, foreign experience

Single‐firm dominance or other proxy Single‐firm dominance or other proxy for the structure of employmentfor the structure of employment

Internet penetrationInternet penetration

Cluster at market (e.g. prefecture) Cluster at market (e.g. prefecture) level level

ExplanationsExplanationsFinancial independence could be result of Financial independence could be result of market conditionsmarket conditions

Market expansion increases variety => could Market expansion increases variety => could be more newspapers that are less occupied be more newspapers that are less occupied with politics in general with politics in general (potential test: look for (potential test: look for other search terms)other search terms)

Availability of alternative sources (e.g. Availability of alternative sources (e.g. Internet)Internet)Demand-side effects (literacy, preferences)Demand-side effects (literacy, preferences)

Financial independence could be the result Financial independence could be the result of decisions of the governmentof decisions of the government

Importance of bureaucracy (e.g. budgetary Importance of bureaucracy (e.g. budgetary spending/revenues)spending/revenues)Economic shocks and threats of unrestEconomic shocks and threats of unrestLocal political competitionLocal political competition

SuggestionsSuggestionsThink about determinants of financial Think about determinants of financial independenceindependence

Test for mechanism behind the resultsTest for mechanism behind the results

Construct “Bartik instrument” (local Construct “Bartik instrument” (local composition of employment and national composition of employment and national industry-wide shocks)for GDPindustry-wide shocks)for GDP

China City Statistical Yearbook, China Large China City Statistical Yearbook, China Large Industry Development ReportIndustry Development Report

Look at Google data Look at Google data control for Internet penetration control for Internet penetration

use relative frequency of search terms as use relative frequency of search terms as proxy for demand about particular type of proxy for demand about particular type of informationinformation

Chinese Search Chinese Search EnginesEngines

Google trends: regional Google trends: regional statisticsstatistics