Regulating local government debt within growth trade-offs
A case study of China’s fiscal consolidation policy
Bibliographic Data
| ID | 6433801 |
|---|---|
| Authors | Y You (0000-0002-3535-6651, Xiamen University), Yan Li (0000-0001-6650-7726, Beijing Municipal Government), Yifan Huang (0000-0002-0325-4706, Chinese University of Hong Kong) |
| Year | 2023 |
| Volume | 18 |
| Issue | 3 |
| Pages | 670-694 |
| Publication date | 2023-12-14 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Asian Public Policy (JOURNAL) |
| Journal identifiers | ISSN: 1751-6242 • E-ISSN: 1751-6234 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/17516234.2023.2294863 |
| OpenAlex | W4389763477 |
| Language | EN |
| Citations received | 1 |
| References cited | 21 |
Local government debt is integral to China's fiscal framework. Faced with mounting debt risks, China's central government launched an expansive fiscal consolidation in 2016. Drawing on in-depth interviews and a case study, our research reveals that this measure signifies China's introduction of de facto fiscal regulations. These regulations have prompted local governments to navigate the complexities of growth objectives and fiscal mandates. Our findings suggest that traditional consolidation strategies are not always effective in the distinct local context of China. As a result, local budgets are increasingly dependent on revenues from land-transfer fees. Notably, the consolidation plan incorporates provisions that allow potential 'loopholes' for local authorities, potentially compromising its overall effectiveness. This study sheds light on the intricate dynamics of local debt management, the Plan's stipulated measures, and the overarching economic context, offering insights into the fiscal challenges faced by China
Business · China · Consolidation (business · Debt · Economic policy · Economics · Fiscal policy · International economics · International trade · Macroeconomics · Political science · China's Socioeconomic Reforms and Governance · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Finance
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| Citations per year | 1 |
|---|---|
| Citation span | 2026 - 2026 (1) |
| Highly cited | No |