Research on the Impact of Digital Finance on Local Government Debt:Empirical Tests Based on China Provincial Panel Data
This article empirically studies the impact of digital finance on local government debt based on provincial panel data from 2015 to 2021 in China,finds that there is a significant negative nonlinear relationship between the two.The development of digital finance has a positive effect on local governments'optimization of their own debt and reduction of systemic financial risks.By using systematic clustering to divide 31 provinces(autonomous regions and municipalities)into three major groups:developing,underdeveloped,and developed regions,it is found that the restraining effect of digital finance on local government debt is most significant in developing regions.The level of marketization has a positive regulatory effect in the process of local government debt suppression by digital finance,especially when the marketization level crosses a certain threshold value,the impact of digital finance on local government debt is significantly enhanced.On this basis,relevant suggestions are put forward to alleviate the local government debt problems at all levels in the context of digital finance through categorized measures.
digital financelocal government debtmarketizationthreshold effect
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万方数据
