Benefiting signatories at others’ expense: Effects and spatial spillover of local emergency cooperation agreements in China

Abstract

AbstractLocal emergency cooperation agreements (LECA) led by local governments have increasingly become an important measure to address public crisis. In China, local governments have also launched such LECA to deal with occupational accidents and diseases. In this study, a quasi‐experimental design was used to evaluate the effects and spatial spillover of LECA on work safety performance improvements. Several econometric models were applied based on provincial panel data (2001–2019). The results show that: (1) LECA reduce both the number and mortality rate of workplace accidents in signatory provinces. (2) LECA can also induce a scale effect, which means that signatories can induce positive spillover effects on work safety performance in neighboring signatory provinces. (3) The analysis also identified negative spillover effects for neighboring non‐signatory provinces, indicating that LECA may lead to spatial spillover of industrial risks. (4) Further analysis indicated that the comprehensive effect of LECA is positive but not significant. (5) The spatial spillover of industrial risks due to LECA mainly occurs in the midwestern region, and positive spillover effect exists between the eastern and western regions due to the economic correlation factors. In addition, general recommendations for regional crisis cooperation among subnational governments are provided.