000294613 001__ 294613
000294613 005__ 20250213113321.0
000294613 0247_ $$2doi$$a10.71609/iheid-7f0f-4q91
000294613 037__ $$aBOOK
000294613 245__ $$aPublic debt and private firm funding$$bevidence from Chinese cities
000294613 260__ $$aGeneva$$bThe Graduate Institute of International and Development Studies$$c2016
000294613 269__ $$a2016
000294613 300__ $$a67 p. : ill.
000294613 336__ $$aPapers and Reports
000294613 490__ $$aGraduate Institute of International and Development Studies Working Paper ; no. 10/2016
000294613 520__ $$aIn China, local public debt issuance between 2006 and 2013 crowded out investment by private manufacturing firms by tightening their funding constraints, while it did not affect state-owned and foreign firms. Using novel data for local public debt issuance, we establish this result in three ways. First, local public debt is inversely correlated with the city-level investment ratio of domestic private manufacturing firms. Instrumental variable regressions indicate that this link is causal. Second, local public debt has a larger negative effect on investment by private firms in industries more dependent on external funding. Finally, in cities with high government debt, firm-level investment is more sensitive to internal funding, also when this sensitivity is estimated jointly with the firm's likelihood of being credit-constrained. Altogether, these results suggest that, by curtailing private investment, the massive public debt issuance associated with the post-2008 fiscal stimulus sapped long-term growth prospects in China.
000294613 700__ $$aHuang, Yi
000294613 700__ $$aPagano, Marco
000294613 700__ $$aPanizza, Ugo
000294613 8564_ $$958f8de46-3a07-4ba2-a3ed-621c7122d80c$$s426705$$uhttps://repository.graduateinstitute.ch/record/294613/files/HEIDWP10-2016.pdf
000294613 901__ $$uInternational Economics Department$$0319285
000294613 901__ $$uCentre for Finance and Development
000294613 909CO $$ooai:repository.graduateinstitute.ch:294613$$pGLOBAL_SET$$pIHEID:Explore
000294613 937__ $$aWP-2016-094
000294613 980__ $$aWP