The Social Network Origin of State Capacity

In this paper, we examine how social networks among political leaders matter for state capacity. Using a unique data set covering the government work reports of city and central governments, we find that city leaders with hometown connections with Politburo Standing Committee Members implement less conformed policies to the central government. Evidence supports the explanation that connected city leaders do not need to flatter the Central leaders to get promotion and, thus, implement policies adapted to local conditions. Conformity to the central government improves the likelihood of promotion, especially for unconnected city leaders, yet hurts local development