How Local Government Behavior Affects Regional Total Factor Productivity——A Perspective Based on Local Government Platform Debt and Tax Competition Levels
This paper constructs a theoretical model comprising government departments,local government platforms,production sec-tors,and banks to investigate the impact of government behavior on regional total factor productivity(TFP).Empirical research is con-ducted using data from prefecture-level cities from 2006 to 2021.The study reveals a dual effect of local government behavior on re-gional TFP.Firstly,intensified tax competition attracts more enterprises,thereby positively affecting regional TFP.However,the fi-nancial crowding-out effect of government platforms on local enterprises increases financing costs,thereby negatively impacting re-gional TFP.Robustness and endogeneity tests support the basic conclusions of this study.Secondly,mechanism tests indicate that large cities and coastal cities,through industrial agglomeration resulting from tax competition,contribute to the improvement of re-gional economic level and TFP.In contrast,small cities and inland cities,by attracting new enterprises to promote regional develop-ment and improve investment environment,also contribute to increased TFP.However,inland cities and small cities suffer from nega-tive impacts on regional TFP due to financial crowding-out.Further analysis reveals that local public debt grows due to the income substitution effect generated by tax competition,and tax competition has spatial negative externalities on TFP.Lastly,this paper pro-vides scientific basis and policy recommendations from the perspective of government behavior to support orderly development of lo-cal economy and alleviate the financing dilemma of enterprises.
Total Factor ProductivityLocal Government Platform DebtTax CompetitionLocal Government Behavior
NETL
NSTL
万方数据
