Local Crowding-Out in China

• 成果类型: Article
• 署名作者: Huang, Yi; Pagano, Marco; Panizza, Ugo
• 署名单位: Centre for Economic Policy Research - UK; University of Naples Federico II
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12966
• 发表日期: 2020
• 页码: 2855-2898
• 关键词: Financial constraints; market imperfections; ECONOMIC-GROWTH; cash flow; INVESTMENT; debt; credit; OWNERSHIP; liquidity; banks

摘要

In China, between 2006 and 2013, local public debt crowded out the investment of private firms by tightening their funding constraints while leaving state-owned firms' investment unaffected. We establish this result using a purpose-built data set for Chinese local public debt. Private firms invest less in cities with more public debt, with the reduction in investment larger for firms located farther from banks in other cities or more dependent on external funding. Moreover, in cities where public debt is high, private firms' investment is more sensitive to internal cash flow.