Suchergebnisse

Chow Kin On. ; Thesis (M.Phil.)--Chinese University of Hong Kong, 2006. ; Includes bibliographical references (leaves 106-110). ; Abstracts in English and Chinese. ; Abstract --- p.i ; Acknowledgements --- p.iii ; Chapter Chapter One --- Introduction --- p.1 ; Chapter 1.1 --- Motivation --- p.1 ; Chapter 1.2 --- Contribution --- p.3 ; Chapter Chapter Two --- Overview China's Administration System --- p.6 ; Chapter 2.1 --- Development of China's System of Administrative Jurisdictions --- p.6 ; Chapter 2.2 --- Administration System of Zhejiang --- p.15 ; Chapter 2.3 --- Administration System of Fujian --- p.19 ; Chapter Chapter Three --- Literature Review --- p.23 ; Chapter 3.1 --- Advantages and Disadvantages of Province- Administering-County (PAC) System --- p.23 ; Chapter 3.2 --- Literature on Prefecture-Level-City-Administering-County (CAC) System --- p.26 ; Chapter 3.3 --- Literature on Economic Growth --- p.30 ; Chapter Chapter Four --- Methodology --- p.34 ; Chapter 4.1 --- Growth Regression Model and Approaches --- p.34 ; Chapter 4.2 --- Explanatory Variables --- p.39 ; Chapter Chapter Five --- Estimation Results --- p.47 ; Chapter 5.1 --- Estimation Results --- p.47 ; Chapter 5.2 --- Summary and Interpretation of Estimation Results --- p.53 ; Chapter Chapter Six --- Policy Implications and Conclusion --- p.58 ; Chapter 6.1 --- Summary of Major Findings --- p.58 ; Chapter 6.2 --- Policy Implications --- p.59 ; Chapter 6.3 --- Limitation and Possible Extensions --- p.63 ; Appendix --- p.65 ; Reference --- p.106

China's local government debt (LGD) has recently become the focus of economic policy debates. However, information about LGD and its impact on economic growth in the Chinese economy is scarce. This paper attempts to present an empirical investigation of the impact of China's LGD on economic growth. It is probably the first of its kind to focus on China and thus contributes to the general literature on the relationship between government debt and economic growth. The paper first provides an assessment of LGD in China's regional economies, using recently released auditing statistics and other available secondary information. It then applies conventional growth analysis methods to examine the impact of LGD on regional growth in China. Various scenario and sensitivity analyses are also conducted, to accommodate the inadequacy and potentially poor quality of debt statistics. Publication

Purpose
With China's economic growth slowing down and the growth rate of fiscal revenue decreasing, the pressure on local government debts is further increasing. Under this background, it is of great significance to clarify the relation between local government debts and China's economic growth in order to give full play to the positive role of local debts in stabling growth. The paper aims to discuss this issue.


Design/methodology/approach
Therefore, this paper explores the impact of Chinese local government debt on economic growth from theoretical and empirical aspects, respectively, and compares the regional differences between different debts and economic growth dynamics.


Findings
In the theoretical model part, this paper constructs a three-sector dynamic game model, under the two circumstances of whether local government is subject to debt constraints, and examines the relation between local government debt and economic growth and other variables through numerical simulation. Research shows that when the government is not constrained by debt, there is an inverted "U" relation between government debt and economic growth. When the government is constrained by debt, the economic growth rate gradually decreases as the government debt increases.


Originality/value
In the theoretical analysis part, this paper tries to estimate the amount of local debts under different calibers and examines the impact of different types of local government debts on China's economic growth and their regional differences. The results show that excessive accumulation of government hidden debts in the eastern region is not conducive to economic growth, while explicit debts in the central and western regions significantly contribute to local economic growth. The results of empirical analysis are basically consistent with the predictions of the theoretical model.