E3S Web Conf.
Volume 235, 20212020 International Conference on New Energy Technology and Industrial Development (NETID 2020)
|Number of page(s)||10|
|Section||Research on New Energy Technology and Energy Consumption Development|
|Published online||03 February 2021|
Has Local Government Debt Promoted Economic Growth in developing countries? New evidence from a survey in China
School of Finance, Chongqing Technology and Business University, Chongqing, 400067, China.
2 School of Economics, Sichuan University, Chengdu city, Sichuan, 610065, China.
3 Chongqing Foreign Language School, Chongqing, 400039, China.
* Corresponding author’s e-mail: firstname.lastname@example.org
Based on the panel smooth transition regression (PSTR) model, this paper empirically analyzes the relationship between Chinese local government’s bond financing and economic growth, with the quarterly panel data of bonds issued by local governments and their investment and financing platform companies in the open market from 2008 to 2018 as samples. The research shows that there is a gradual non-linear relationship between local government bond market financing and economic growth in China. With the increase of the scale of local government bond market financing in China, the effect of bond market financing on economic growth will gradually decline and have a negative effect. This result means that for developing countries like China, it is not advisable to rely solely on government investment to drive economic growth.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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