Analysis of the impact of local government debt policy on the financial ecological environment-based on debt level and debt structure perspectives

Frontiers in Environmental Science

Environmental Science

Zhu Yi¹  Xuedong Zhang²  Jiale Yan³  Yongjian Huang⁴  ShaoKang Xu⁵  Zejun Wang⁶ 

[1] CPC Guizhou Provincial Party School, Zunyi, China;Department of Humanities Management, Seoul National University of Science and Technology, Seoul, Republic of Korea;Irvine Valley College, Irvine, CA, United States;School of Finance, Central University of Finance and Economics, Beijing, China;School of Finance, Shandong Institute of Business and Technology, Yantai, China;School of Law, University of International Business and Economics, Beijing, China;

关键词: local government debt;    debt structure;    financial ecological environment;    spatial spillover effect;    government debt;   

DOI  :  10.3389/fenvs.2023.1218505

 received in 2023-05-07, accepted in 2023-10-11,  发布年份 2023

来源: Frontiers

【 摘 要 】

This paper employs panel data from 227 prefecture-level cities in China spanning the period from 2000 to 2020 to investigate the effects and influences of local government debt policies on the financial ecological environment. Considering regional economic foundation, financial development, government governance, and the construction of the social credit system, our analysis reveals the following outcomes regarding debt level and debt structure: Firstly, we find that higher debt levels and an increased proportion of hidden debt at the local government level have impacts on various dimensions of the financial ecological environment. Specifically, debt expansion facilitates regional economic foundations and financial development but hampers government governance and the construction of the social credit system, leading to a deterioration in the development of the financial ecological environment. Furthermore, employing a threshold regression model, we have not identified a significant nonlinear relationship in this context. Secondly, local government debt exhibits a reverse spatial spillover effect on the financial ecological environment of surrounding regions, contrasting with the effects observed within the local area. This effect manifests as the enhancement of the financial ecological environment in neighboring areas.

【 授权许可】

Unknown   
Copyright © 2023 Wang, Yan, Xu, Yi, Huang and Zhang.