TITLE:
The Impact of Anti-Corruption on Macau’s Gaming Industry: An Externality Analysis
AUTHORS:
Chaoqun Chen
KEYWORDS:
Anti-Corruption, Macau, Gaming Industry
JOURNAL NAME:
Chinese Studies,
Vol.7 No.2,
April
4,
2018
ABSTRACT: This study identifies and decomposes
the impact of China’s central anti-corruption on Macau’s gaming industry by examining
the quarter revenue data of six gaming companies from 2010 to the third quarter
of 2017. The analysis results show that the negative impact of the anti-corruption
campaign on the revenue of Macau’s gaming industry is lagging behind, and the strengthening
of anti-corruption efforts since the establishment
of the 18th Central Committee of the Communist Party of China has caused clear externality.
The effect remains significant after excluding the influences of macroeconomic factors,
the Brazilian World Cup, and the Asia gaming industry competition. For the impact
mechanism, the effect is mainly determined through the per capita gaming
of Macau visitors instead of the number of gamers. This study provides empirical
support for research on the externality of anti-corruption.