{"title":"The hidden crowding out effect: How does local government implicit debt pressure influence enterprise productivity in China?","authors":"Lei Wang, Chuncao Wang, Jiayi Chen, Jingke Chang","doi":"10.1002/mde.4387","DOIUrl":null,"url":null,"abstract":"<p>To explore whether and how local government implicit debts pressure (LGIDP) affects the firm performance, this paper bases on the 2012–2018 listed enterprise data and local government financing vehicles (LGFVs) data to empirically test the impact of LGIDP on the total factor productivity (TFP) of non-local government financing vehicles (N-LGFVs). The results show that LGIDP significantly reduced the TFP of N-LGFVs by transferring fiscal resources, enhancing tax collection, and transferring credit resources. But this distorting effect of LGIDP on the TFP of N-LGFVs only exists in non-state-owned enterprises, small-scale enterprises, and young enterprises. Our paper has an important policy recommendation that regulating LGFVs and alleviating LGIDP are of great significance for China to achieve sustained economic growth.</p>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 1","pages":"502-514"},"PeriodicalIF":2.5000,"publicationDate":"2024-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Managerial and Decision Economics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/mde.4387","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
To explore whether and how local government implicit debts pressure (LGIDP) affects the firm performance, this paper bases on the 2012–2018 listed enterprise data and local government financing vehicles (LGFVs) data to empirically test the impact of LGIDP on the total factor productivity (TFP) of non-local government financing vehicles (N-LGFVs). The results show that LGIDP significantly reduced the TFP of N-LGFVs by transferring fiscal resources, enhancing tax collection, and transferring credit resources. But this distorting effect of LGIDP on the TFP of N-LGFVs only exists in non-state-owned enterprises, small-scale enterprises, and young enterprises. Our paper has an important policy recommendation that regulating LGFVs and alleviating LGIDP are of great significance for China to achieve sustained economic growth.
期刊介绍：
Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.
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