The Influence Of Local Debt On The Development Of Manufacturing Industry In China

In the international influence of weak economic growth in China's economic growth slowed down,local debt is more and more high,according to statistics of the Ministry of Finance announced the "December 2017 local government bond issuance and debt balance" by the end of December 2017,China's local government debt balance reached 164707 yuan.The total debt scale of the eastern provinces accounted for 47.5% of the whole country,and the total debt scale of the central provinces accounted for 23.6% of the whole country.The total debt scale of the western provinces accounted for 28.7% of the whole country.The manufacturing industry is the core of the second major industries in China and an important pillar of the local economic development in China,which plays a decisive role in the development of the national economy.The manufacturing industry can mobilize capital,technology and labor in a large scale,and promote the development of the service industry,which will certainly become the only engine of economic development.In the study,this paper uses three theoretical hypotheses to study the impact of local debt on the development of manufacturing industry,including: local government debt raising can promote the development of regional manufacturing;the debt scale of local governments in the eastern and central regions of our country has an inverted U relationship with the development of manufacturing industry;the scale of local government debt in the western region of our country has a linear increasing relationship with the development of manufacturing industry.Taking the positive correlation between the manufacturing industry and the local GDP growth rate as the breakthrough point,the relationship model of local debt and manufacturing industry is constructed,and the government debt balance /GDP,GDP growth rate,the proportion of manufacturing industry to GDP,the total import and export /GDP and the human capital stock are the main variables,and the data are collected and calculated with a large amount of energy,and the empirical regression results are obtained,which proves the hypothesis.It was established.Through the study,it is found that the existing problems of local debt in different regions of China mainly include fiscal decentralization,imperfect government accounting system,poor performance evaluation mechanism and risk liability mechanism,and lack of effective supervision mechanism,so that the influence of local debt on the development of manufacturing industry in the eastern region and the central and western regions is inconsistent,which seriously restricts the regional economy.The sustainable development of economy and the steady growth of China's overall economy.Therefore,this paper proposes to control the scale and investment of the debt,to restrict the local government's debt behavior through laws and regulations,to establish the early warning system of local debt,to control the debt scale and investment of the high provinces and municipalities in the eastern and central regions,to establish the local financial credit evaluation system,to control the local government's behavior of borrowing and guarantee,to optimize the scope of investment and to deal with the government according to local conditions.The investment scope of government debt is optimized.The eastern and central regions need to control the scale of local debt,adjust the industrial structure,upgrade the manufacturing industry,improve the government's debt scale,optimize the allocation of resources,strengthen the coordination with the financial industry,and prevent the increase of local debt by defining the functions of local financial and financial institutions to prevent the overdraft of the finance.To improve the preferential policies of the financial institutions to replace the local debt,promote the diversification of the local debt subject,make the local debt flow,make the finance return to the finance,strengthen the coordination and coordination of the financial policy and monetary policy,the scientific and reasonable use of financial instruments to regulate the growth of the money supply,control the amount of money,adjust the structure between the currency and the debt,and raise the appreciation of the RMB.We should expand the exchange rate and meet the general needs of the society.