Drivers of local government borrowing in China: Fiscal hunger and competition game under asymmetric decentralization

IF 4 2区 地球科学 Q1 GEOGRAPHY
Yuanshuo Xu , Jiahe Liang , Yan Wu
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引用次数: 0

Abstract

This paper contributes two mechanisms through which asymmetric fiscal decentralization drives local government borrowing: ‘fiscal hunger’ (borrowing to address budgetary fiscal gaps, leverage land resources, and pay off existing loans) and ‘competition game’ (borrowing to compete for bond issuance and state funds). Analyzing a dataset of 290 Chinese cities from 2006 to 2015, we find local government borrowing is driven by both fiscal hunger and inter-city competition. Borrowing is not confined to the growth-oriented purpose. Our Geographically Weighted Panel Regression uncovers the spatial patterns of two borrowing mechanisms, in which borrowing in less-developed regions is predominantly driven by fiscal hunger, while developed coastal regions actively engage in inter-city competition through borrowing. These dynamics may aggravate fiscal disparities among Chinese cities.
中国地方政府举债的驱动因素:非对称分权下的财政饥饿与竞争博弈
本文介绍了非对称财政分权推动地方政府借贷的两种机制:财政饥渴"(为解决预算财政缺口、利用土地资源和偿还现有贷款而借贷)和 "竞争博弈"(为争夺债券发行和国家资金而借贷)。通过分析 2006 年至 2015 年中国 290 个城市的数据集,我们发现地方政府借贷是由财政饥渴和城市间竞争共同驱动的。借贷并不局限于以增长为导向的目的。我们的地理加权面板回归揭示了两种借贷机制的空间模式,其中欠发达地区的借贷主要由财政饥渴驱动,而沿海发达地区则通过借贷积极参与城市间竞争。这些动力可能会加剧中国城市间的财政差距。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Applied Geography
Applied Geography GEOGRAPHY-
CiteScore
8.00
自引率
2.00%
发文量
134
期刊介绍: Applied Geography is a journal devoted to the publication of research which utilizes geographic approaches (human, physical, nature-society and GIScience) to resolve human problems that have a spatial dimension. These problems may be related to the assessment, management and allocation of the world physical and/or human resources. The underlying rationale of the journal is that only through a clear understanding of the relevant societal, physical, and coupled natural-humans systems can we resolve such problems. Papers are invited on any theme involving the application of geographical theory and methodology in the resolution of human problems.
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