Local Government Debt Repayment Pressure,Corporate Trans-Regional Investment and Capital Factor Market Integration
Achieving the capital factor market integration characterized by the smooth flow of capital factors is a key component of constructing a unified national market.Currently,with the rapid development of modern transportation and communication technologies in China,tangible barriers to the flow of capital factors related to natural geographic factors have gradually been eliminated,,while intangible barriers caused by policy factors remain.What are the impacts and mechanisms of local government debt repayment pressure,as an important policy factor,on the integration of the capital factor market?Existing literature has not conducted in-depth research on this issue.This paper constructs a game model between the government and firms to explore the impact mechanism of local government debt repayment pressure on the capital factor market integration,and then conducts an empirical investigation based on the city-enterprise panel data from 2005 to 2022.The results show that the increasing debt repayment pressure has significantly hindered local corporate trans-regional investment,but promoted the increase in the proportion of local investment,creating an intangible boundary for the capital factor market integration.Mechanism testing shows that due to the desire for financial resources such as taxation and land transfer income,local governments expect enterprises with higher tax profits and land transfer income to retain capital locally,thus more strictly constraining the trans-regional investment of these enterprises.Further research shows that local government debt repayment pressure not only motivates local governments to take intervention measures but also inhibits the inflow of capital from other regions by increasing uncertainty in the investment environment and reducing social credit.Compared to existing literature,this paper may have the following marginal contributions.First,it further enriches research on factors influencing the integration of China's capital factor market.There are few studies on the relationship between local government debt repayment pressure and capital factor market integration from the perspective of government-enterprise relations,while this paper can fill this research gap.Furthermore,existing research on the economic effects induced by local government debt is mostly limited to discussions on internal economic development and financial risks within areas.This paper innovatively expands research on the impact effects of local government debt from the perspective of the cross-regional flow of factors.Finally,this paper includes both the inflow and outflow of capital factors between regions in its research scope,finding that increased local government debt repayment pressure not only obstructs the outflow of local capital factors but also significantly reduces local attractiveness to external capital factors.
local government debt repayment pressurecapital factor market integrationcorporate trans-regional investmenttrans-regional flow of capital
万方数据
维普
