Research On The Impact Of Local Competition On Local Government Debt Performance

The "14th Five-Year Plan" clearly pointed out that to comprehensively deepen reform and build an advanced socialist market economy system,it is necessary to strengthen the budget performance management system and improve the government debt management system.It can be seen that the management of local government debt performance has become particularly important,and the study of the influencing factors of local government debt performance has naturally become the core of the subject.Existing literature mostly focuses on the study of the influence of internal factors in various regions on the performance of local government debt,but the external factors between regions,local competition also affects the performance of local government debt.Based on the research on the impact mechanism of local competition on local government debt performance,this paper uses the mediation effect model to further explore the impact of local competition on debt performance through mediating variables,and conducts an empirical analysis based on provincial panel data.The empirical results show that: local competition can significantly improve government debt performance,and the conclusion still holds after replacing explanatory variables for robustness test;local competition also has a negative effect on government debt performance through the intermediary variable,increasing the scale of debt,but the overall improvement of local competition debt performance.The long-term mechanism test is carried out from the time level.The benchmark test results show that the total utility has passed the 1% significance level after a two-year lag and a three-year lag,and the one-year lag and four-year lag are not significant;The two-year lag and three-year lag passed the significance levels of 1%,5%,and 10%,respectively,and the significance decreased year by year;the direct effect of local competition was not significant after one year,two years,three years,and three years.Four years are significant.In order to further analyze the impact of local competition on debt performance,a panel quantile regression was carried out from the perspective of regional differences.The total utility of local competition passed the significance test in 30%,50%,and 75% of the cases,and the coefficients were all Positive number;the intermediary utility,that is,the effect of new debt scale on government debt performance,shows a gradual weakening accompanying the performance level from high to low after taking into account its own performance level;the direct effect of local competition on government debt performance is considered After reaching its own performance level,it shows an inverted U-shaped trend with the change of performance level from high to low.The purpose of this paper is to explore the mechanism of local competition on debt performance,and to provide a theoretical basis for local governments to reasonably carry out local competition and improve debt performance in the future.