China's Local Government Debt Use Efficiency Evaluation And Influencing Factors Based On DEA-Tobit Model

The issue of local government debt in China has been the focus of social attention for many years.The academic community has conducted multiple perspectives on debt scale,debt risk,and debt management.The government needs to make large-scale investment in order to achieve full employment and improve the level of social development in order to fulfill economic functions.The reality is that the tax-sharing system has led to a lack of financial resources for local governments.In particular,after the comprehensive “reform from business reforms,” local governments' revenue has plummeted.In order to ensure the effective provision of public goods and public services,local government debt has emerged.With the large-scale formation of local government debt,in order to make better use of local government debt to create greater value,it is necessary to study the efficiency of local government debt and its influencing factors.The study of the efficiency of local government debt and its influencing factors in China should be based not only on the basic situation of local government debt,but also on the consideration of social and environmental factors.Based on the above ideas,this paper uses the DEA-Tobit model to study the efficiency of local government affairs and its influencing factors.First,the domestic and foreign documents on the use of local government debt efficiency are summed up to fully understand the concept of local government debt utilization efficiency,evaluation criteria,analysis methods,influencing factors,and policy recommendations.Secondly,it discusses the concept of local government debt and related theories,providing a theoretical basis for deep research.Then use the three-phase DEA model to measure the efficiency of the use of local government debt in China.The empirical analysis results are as follows: First,the overall efficiency of local government debt utilization in our country is better,but there are significant differences in different regions.Regional differences are manifested in the highest efficiency of the use of local government debt in the eastern region,followed by the use of local government debt in the central region,and the lowest efficiency in the use of local government debt in the western region.The second social environmental factor has a significant impact on the efficiency of the use of local government debt in China.After eliminating environmental factors,the efficiency of using local government debt has increased significantly.The Tobit model was used again to analyze the influencing factors of the use efficiency of local government debt.Based on the empirical analysis results,we can see the number of investment and financing platform companies,total social fixed asset investment,grade road mileage,per capita debt balance,government transparency,per capita GDP,and capital formation rate.The degree of marketization,GDP growth,and local government debt use efficiency have different degrees of correlation.In summary,it can be concluded that the main factors affecting the taxation are the lack of financial resources of local governments,the unreasonable promotion mechanism of officials,the lack of government debt management,the lack of legal constraints,and the poor market environment.Finally,according to the results of theoretical analysis and empirical analysis,the policy recommendations for improving the efficiency of the use of local government debt are refined,namely,the deepening of fiscal tax system reform,the implementation of the new “Budget Law” to achieve debt constraints,and the regulation of debt operation and financing platform management.Change the performance evaluation system to strengthen debt supervision,promote the transformation of government functions,and improve the market mechanism.