Research On The Influence Of Local Government Debt Level On Regional Economic Openness

In recent years,in order to better develop the economic level and promote economic growth,the level of local government debt has been massively expanded.And under the background of reform and opening up and economic globalization,China should build an open economic system of higher level.In this context,this paper studies the influence of local government debt level and economic openness,and has certain significance.In terms of theoretical research,this paper sorts out the influence mechanism of local government debt level on regional economic openness,raises funds through local government debt,affects foreign trade,foreign investment,tourism development and debt risk,and thus affects regional economic openness,and proposes corresponding hypotheses.In terms of empirical research,this paper first uses the method of combining principal component analysis and entropy to calculate the economic openness of 31 provincial administrative regions from 2015 to 2020.Then,the influence of local government debt level on regional economic openness is analyzed,and the double fixed effect and threshold model is adopted to verify the hypothesis.The main conclusion of this paper is that the influence of local government debt level on regional economic openness shows an inverted "U" shaped relationship,and there are regional differences.Based on the conclusion,this paper puts forward the following suggestions:(1)manage the scale of local government debt scientifically and effectively;(2)Strengthen debt monitoring and establish early warning and prevention mechanisms for local government debt risks;(3)Governments in different regions should formulate regional strategies and policies according to local conditions;(4)Further deepen and standardize the financing behavior of local governments.