Research On The Impact Of Local Government Debt On The Total Factor Productivity Of Private Small And Medium-sized Enterprise

As my country’s economy enters a stage of high-quality development,as micro-subjects in economic development,enterprises are also seeking their own high-quality development.Total factor productivity is a measure of the high-quality development of an enterprise.In order to improve total factor productivity,its influencing factors need to be considered.At the same time,in order to promote local economic development,local governments have borrowed and invested more funds in infrastructure and other projects that benefit the people.With the passage of time and the needs of economic development,the scale of debts has gradually expanded.However,the development of enterprises is inseparable from the support of external financing funds.From this we can see that the debt-raising behavior of local governments has a negative impact on micro-entities(especially private small and medium-sized enterprises).Development has had a certain impact,which is indirectly reflected in the fact that there is a certain relationship between local government debt and the total factor productivity of enterprises.At present,there are few research literatures on the relationship between the two and the transmission mechanism,and there are very few literatures on private small and medium-sized enterprises as the research objects.Therefore,it is necessary to deeply explore the impact and internal mechanism of local government debt on the total factor productivity of private small and medium-sized enterprises,and provide feasible suggestions for improving the level of total factor productivity of private small and medium-sized enterprises and local government debt governance.This paper first conducts a theoretical analysis,and puts forward corresponding hypotheses on this basis.Then,based on the panel data of all private SMEs on the main board and GEM from 2016 to 2020,the relationship between the expansion of local government debt and the total factor productivity of private SMEs is tested through empirical analysis.relationship,and conducted a heterogeneity analysis based on firm characteristics,in addition to mediating effect testing,moderating effect testing,and robustness testing.The results show that:(1)The expansion of local government debt has a negative impact on the total factor productivity of private SMEs;(2)In terms of regions,the total factor productivity of private SMEs in the central and western regions is more susceptible to the negative impact of local government debt;From the perspective of industry,the relationship between the total factor productivity of private SMEs belonging to the secondary industry and local government debt is more significant;(3)From the perspective of financing constraints,the mechanism analysis shows that local government debt is significantly reduced through the financing constraints of private SMEs The improvement of total factor productivity;the analysis of the mechanism from the perspective of human capital level shows that local government debt affects the financing of private small and medium-sized enterprises and then affects the upgrading of human capital level,which is not conducive to the improvement of total factor productivity;(4)the adjustment effect of asset-liability ratio shows that private small and medium-sized enterprises The higher the asset-liability ratio,the more vulnerable to the adverse impact of local government debt;the adjustment effect of industrialization level shows that the higher the regional industrialization level,the smaller the impact of local government debt on the total factor productivity of local private SMEs.Finally,according to the results of empirical analysis,the standard puts forward corresponding countermeasures and suggestions from the perspectives of the state,local government,and enterprises: the first is the national level.Increase policy support for private small and medium-sized enterprises in the central and western regions;increase support for the development of industrial private small and medium-sized enterprises;establish and improve the legal system and legal system to provide a fair development environment for business entities,especially private small and medium-sized enterprises.The second is the local government level.Broaden the sources of funds and reduce the dependence on bank credit financing;standardize the use of funds and improve the level of information transparency;improve service levels and support the development of private small and medium-sized enterprises.The third is the enterprise level.Introduce talents through incentive policies to increase the talent reserve of the enterprise;standardize enterprise management and formulate clear development goals;moderately choose the development scale and attach importance to technological innovation and development;improve the diversification of financing channels;strengthen enterprise risk management and enhance the competitiveness of external financing.