Research On The Impact Of Local Government Debt On Economic Growth In China

The rapid accumulation of local government debt in China has aroused widespread concern from all walks of life.Finding a reasonable degree of debt has become an important issue,and it is meaningful to clarify the impact of local government debt on regional economic growth.This paper makes a theoretical analysis on economic growth:from the perspective of mechanism,this paper analyses the relationship between the two based on endogenous economic growth theory,and from the mathematical and physical aspects,expands the Barro model to analyze the relationship.This paper classifies local debt into the following three categories:explicit debt,urban investment debt and state-owned enterprise debt.In terms of measurement methods,two optimized models are put forward for analysis.The empirical analysis of this paper is divided into two parts:benchmark regression and robustness test.Benchmark regression is mainly an empirical analysis of the fixed effect model,as well as the use of the system GMM method to get the same conclusion again.Then,the robustness of the above benchmark regression results is tested.Then it tries to give relevant policy recommendations,and based on the data,methods and conclusions used in the full text,the future research is prospected.