A Study on the Impact of Fiscal-Financial Decentralization on the Expansion of Local Government Debt
[an error occurred while processing this directive]
Abstract Based on the panel data from 30 provinces in China from 2010 to 2018 , this paper studies the spatial correlation among fiscal decentralization, financial decentralization and the expansion of local government debt. The results show that fiscal decentralization not only promotes the expansion of local government debt in the region, but also stimulates the debt expansion of neighboring regions. The financial decentralization has shown a restraining effect. After further considering the impact of decentralization regulation on debt expansion under local government competition behavior, it is found that the interaction between fiscal decentralization and local government competition promotes the expansion and spatial spillover of local government debt. However, the interaction of local government competitive behavior alienates the impact of financial decentralization on the expansion of local debt. In addition, the interaction between fiscal decentralization and financial decentralization does not show a significant positive linkage effect. The conclusions of this paper have certain practical significance for the scientific management of local government debt, preventing systemic financial risks and promoting the sustainable development of local finance.
HOU Shiying,SONG Liangrong. A Study on the Impact of Fiscal-Financial Decentralization on the Expansion of Local Government Debt. Economic Survey, 2021, 38(4): 0141.
2021, Vol. 38 
[an error occurred while processing this directive] | [an error occurred while processing this directive]
