Probe - Accounting, Auditing and Taxation

The Research on the Characteristics of China's Local Government Debt Situation and Governance Development Strategies

Jie Zhang

School of Business, Financial Management, Belarusian State University

DOI: https://doi.org/10.59429/paat.v5i3.1383

Keywords: Local Government Debt; Heterogeneous Attributes; Policy Recommendations

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Abstract

This article examines various factors such as political structure, economic framework, and fiscal system to reveal distinctive characteristics exhibited by local governments in different countries. Through analyses encompassing risk entities, local government behavior, fiscal insolvency, and a comparison of diverse bondholders, financing constraints, and credit ratings, the heterogeneous attributes of China's local government debt are synthesized. Building upon these findings, a novel theory framework of local government debt is formulated, bearing Chinese characteristics, thereby offering policy recommendations for resolving local government debt issues in our country.

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