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What a Chinese crackdown on corruption meant for Beijing’s high-end restaurant market

By Rui Du, Assistant Professor of Economics, Oklahoma State University

Corruption crackdowns are bad for businesses that thrive on their proximity to political power centers. In fact, they can change the physical layout of an entire industry.

That is what my colleagues and I found when we looked at the impact of a major Chinese government campaign against corruption on Beijing’s restaurants.

In 2012, the Chinese Communist Party introduced its eight-point regulation…

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