That's true, and a big reason why coal-producing Inner Mongolia is the only non-coastal regions in China that has GDP per capita greater than 10,000USD. (as illustrated in a map in the article)
Yes, quite a number of officials say that it is certainly not a bad province to have a post in, for as long as one ready to endure the weather and boredom.
I think both. One go there to run their projects with plump provincial funds. Kangbashi ghost town is the perfect example of what local officials do while having nothing to do.