The Impact Of Local Government Debt On Real Enterprise Innovation

The "four trillion investment" fiscal stimulus policy introduced by The State Council has induced more and more local governments to take the initiative in debt financing.At the same time,under the dual role of fiscal decentralization system and political promotion tournament,local governments use financing platforms,government bonds,shadow banks and other ways of raising debt to raise funds,which makes the scale of debt rise sharply in just a few years,and the problem of local government debt gradually highlights.The steady development of innovation-driven and real economy is an indispensable factor to achieve the goal of high-quality economic development.And raise,use of local government debt and pay link,to a large extent caused by overheated financial markets and real estate prices are high,dramatically change the entity enterprise mode of investment structure and asset allocation,and distortion at the same time,the financial resource allocation mechanism,extrusion entity enterprise financing,make entity enterprise face more serious financing constraint.All these changes have a severe impact on the R&D and innovation of real enterprises.Based on local government debt to the entity enterprise innovation mechanism and the influence of investigation and research,not only contribute to a more comprehensive and in-depth understanding of local government debt and the internal logic relationship between the entity enterprise innovation,but also be able to implement the entity enterprise innovation development strategy,promote the entity enterprise innovation to provide a more solid theoretical support,We will further realize the high-quality development of our economy.This paper focuses on the impact of local government debt on real enterprise innovation.Firstly,the existing literature on the impact of local government debt on the innovation of real enterprises is comprehensively sorted out and summarized,then,the impact of local government debt on the innovation of real enterprises is theoretically analyzed,and the mechanism of local government debt on the innovation of real enterprises is deeply discussed considering the influence mechanism of enterprise financialization and financing constraints.Secondly,this paper empirically tests and analyzes the specific effect of local government debt on the innovation of real enterprises,and tests the robustness of the empirical results from different perspectives.Thirdly,the paper empiricism tests and studies the influence mechanism of enterprise financialization and financing constraint as local government debt on real enterprise innovation.This study shows that local government debt has a significant negative impact on the innovation of real enterprises,and it inhibits the innovation of real enterprises by worsening the degree of financing constraints faced by real enterprises and exacerbating the degree of financialization of real enterprises.Finally,according to the conclusion of the study,put forward the corresponding countermeasures and suggestions:first,establish a diversified assessment system for local government officials;second,optimize the local government fiscal revenue system;third,strictly control the investment of real enterprises;fourth,promote market-based financing for local governments.Through the above research,this paper can further improve and enrich the relevant theories of the impact of local government debt on the innovation of real enterprises,so as to provide scientific and effective decision-making reference for solving the problem of local government debt,improving the innovation power and ability of real enterprises.