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Anti-Corruption, Safety Compliance and Coal Mine Accidents: Evidence from China

This study evaluates the impact of the on-going anti-corruption campaign launched by President Xi since 2013 on coal mine mortality in China. By using a unique provincial-level dataset on coal mines from 2004 to 2015, we find evidence that provinces with stronger exposure to the anti-corruption campaign have experienced a significantly larger decrease in coalmine death rates. This result is robust to a vast array of sensitivity checks. Further evidence suggests that stronger intensity of safety inspections induced by the campaign is one of the potential channels through which anti-corruption reduces fatality rates. Consistent with our conjecture that stronger exposure to the campaign could make coalmine firms less likely to shirk on safety expenditures, we find the campaign has significantly raised the costs and lowered the profits of the industry.