Research On The Mechanism And Effect Of Local Government Debt Affecting Financial Ecological Environment

As the scale of local government debt continues to expand,most of the existing studies have discussed the effects of local government debt from the perspective of economic growth and financial risks,but there is insufficient research on the financial ecological environment as a system that reflects local development issues.The expansion of local government debt has provided financial support for the construction of the regional financial ecological environment,but as debt risks continue to accumulate,it has also increased the pressure to optimize the financial ecological environment.In the context of continuously optimizing the financial ecological environment requirements and the continuous innovation of local governments’ borrowing methods,exploring the general mechanism and spatial effects of local government debt affecting the financial ecological environment from the perspectives of regional economic growth,financial development,government governance,and social credit construction has important theoretical and practical significance to understand China’s local government debt problems and explore the policy space for optimizing the financial ecological environment.On the basis of sorting out relevant research,this thesis firstly analyzes the mechanism of local government debt affecting the financial ecological environment in the region from a theoretical perspective,and then uses the balance sheet of the financing platform and the entropy method to calculate the scale of local government debt and the development level of the financial ecological environment in 16 prefecture-level cities in Shandong Province from 2009 to 2019,expounds the temporal and spatial evolution and characteristic facts of local government debt and financial ecological environment in Shandong Province,and further uses two-way fixed effect model and spatial panel model to quantitatively study the relationship between local government debt and financial ecological environment,and quantitatively analyzes the impact of the scale and structure of local government debt on the financial ecological environment and different dimensions of financial ecological environment indicators,and uses the instrumental variable method to deal with the endogeneity problem and transform the core explanatory variables to test the robustness.The research results show that:(1)The debt risk of local governments in Shandong Province is generally controllable,and the average debt ratio of local governments in 16prefecture-level cities in Shandong Province in 2019 is lower than the internationally accepted warning line of 60%,and there is a big difference between the regions with the lowest debt ratio and the highest regions.The overall development quality of the financial ecological environment has been improved slowly,and there are significant regional differences in the evaluation scores of the financial ecological environment.(2)The increase in the scale of local government debt has a positive effect on the development of the financial ecological environment,which is reflected in the fact that the expansion of the scale of debt has promoted the construction of regional economic foundations and social credit infrastructure,and no significant critical value has been found for this promotion.(3)The debt structure test shows that the higher the proportion of implicit debt,the less conducive to the optimization of the financial ecological environment,mainly hindering the stable development of local finance.(4)Local government debt has a significant spatial spillover effect on the financial ecological environment.The scale of local debt and the evolution of debt structure have positive and negative spillover effects on the development of the financial ecological environment in neighboring cities.Based on the research conclusions,the following inspirations are obtained: First,make overall arrangements to optimize the policy system of the financial ecological environment,strengthen the coordinated construction among the economic environment,the financial environment,the government governance environment and the credit environment,and realize the coordinated development of the regional financial ecological environment.Second,attach great importance to the negative impact of local government debt risks on the development of the financial ecological environment,strictly control new debts,and strengthen the dual risk management of local government debt scale and structure.Third,strengthen the function of local government debt funds to support the financial ecological environment,reasonably guide the investment of debt funds,and strengthen local government debt performance management.Fourth,pay attention to the spatial connection between local government debt and the financial ecological environment,and reform the existing performance appraisal standards for local government officials.The innovation of this thesis is manifested in three aspects: The first is the innovation of the research content,this thesis systematically discusses the impact of local government debt on the financial ecological environment from the aspects of regional economic growth,financial development,government governance and social credit construction,enriching the research on the relationship between local government debt and financial ecological environment.The second is the innovation of the research angle,which explores the impact of local government debt evolution on the financial ecological environment from the dual perspectives of debt scale and debt structure.