Research On The Impact Of Urban Investment Bond Expansion On Total Factor Productivity Of Enterprises

Since the implementation of China’s tax-sharing reform in 1994,an imbalance between "financial" and "administrative" powers has resulted in local governments’over-reliance on debt financing.When the subprime mortgage crisis broke out in 2008,China implemented a "four trillion fiscal investment plan" to stimulate economic development,and the government’s financing needs expanded dramatically.At the same time,local governments issued local urban investment bonds in the name of urban construction investment companies to raise funds,and the number of local financing platforms increased dramatically,which has affected the high-quality and sustainable development of China’s economy.In addition,the long-term high-quality economic development cannot be achieved without the improvement of total factor productivity of enterprises.Therefore,studying the relationship between urban investment debt expansion and total factor productivity of enterprises can help promote high-quality sustainable development of China’s economy.In terms of economic effects,there are positive and negative correlations between urban investment debt and regional economic development;in terms of spatial effects,urban investment debt has spatial spillover effects on both regional economic development.And the expansion of urban investment debt will inhibit the improvem ent of total factor productivity of enterprises through mechanisms such as taxation and credit constraints.Based on this,this paper considers the possible spatial correlation of regional urban investment debt and guarantees the independence of urban investment debt issuance in neighboring spatial units.This paper selects the empirical data of 1970 listed companies matched with 333 prefecture-level cities and 33 provincial-level urban investment debt data from 20122021,and establishes static bifixed panel models and dynamic bifixed spatial Durbin models,respectively,to study the impact of urban investment debt expansion on enterprise total factor productivity from both urban investment debt flow and urban investment debt stock.The economic and spatial effects of urban investment debt expansion on the total factor productivity of enterprises are investigated from two aspects:urban investment debt flow and urban investment debt stock.It is found that the economic and spatial effects of TPD expansion on the total factor productivity of enterprises are significant and there are significant regional differences,and TPD expansion can affect the total factor productivity of enterprises through the taxation route and the corporate financing constraint route.Therefore,this paper proposes recommendations based on the findings to help government departments to reasonably plan the scale of urban investment bonds issuance,promote inter-regional linkage and exchange,guide the government to pay attention to private enterprise development support,optimize urban investment bonds fund management and reasonable investment,so that the issuance and use of urban investment bonds can effectively improve the total factor productivity of enterprises and help China’s high quality and sustainable economic development.