Abstract Based on the provincial panel data from 2008 to 2017, this paper constructs a fixed effect model to test the internal linkage mechanism between government debt and income distribution. The empirical results show that government debt is helpful to solve the problem of income distribution, which is the key to achieve sustained economic growth and reduce the risk of government debt. At the same time, through the regional division model, it is further confirmed that due to the difference of development degree and stage among regions, the improvement degree of government debt on income distribution has regional heterogeneity: the effect on the eastern region is the weakest, while the effect on the western region is the strongest. Therefore, at this stage, the risk of government debt does not exist in China. In order to solve the problem of income distribution faster and better, the central and western regions should further expand government expenditure and expand the scale of government debt. This paper can be used for reference for the understanding and further governance of government debt risk in the transitional period.
2020, Vol. 37 
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