Research Status, Causes And Countermeasures Of Chinese Local Government Debt

The nearly 40 years since reform and opening up, China’s various undertakings have made rapid development in today’s global economy.China has become an existence of power. Of course, most of the rapid development of various undertakings in China also relies on the huge contribution of the government in the economy.But at the same time, we also should know, whether the development of social economy, or urban construction around the guarantee, the great role of government in economic development is the need. But most of the government’s financial capital come from the tax, so money is limited. Therefore, the debt is needed. As a result, local government debt is produced, also created a series of debt problems. Every year, for example, local government debt lurch higher will affect local finance,and will disrupt financial order; Local government debt too much will absorb social idle funds, and will crowd out of private enterprises, thereby reducing the market regulation, and reducing the use of social resources efficiency and investment efficiency; Too much local government debt will impact on the associated parties, produce other risks. Equivalent variable accumulated to a certain extent, inevitably produce qualitative change. So we have to attach importance to these problems above, and give more focus on local government debt.In this paper, the local government debt in our country are discussed in details. First of all, clear the concept of local government debt, set a clear understanding of the classification of government debt. Secondly, the characteristics and potential problems of local government debt in China are analyzed. Third, from the status and the conclusion of the empirical aspect, analyze the main causes and influence.Fourth,select a series of data related to the local government debt in our country, use econometric software to carry on the empirical analysis,to get the main factors influencing the scale of local government debt. Finally,draw conclusions and put forward some feasible countermeasures.