Chapter 6. Local Government Finances and Fiscal Risks
Author:
Mr. Waikei R Lam
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Language:
English
Print Publication Date:
14 Jan 2017
Keywords:
BOOK; government; China; pension; rate; local government; bond financing; debt-swap program; bond obligation; vehicle activity; Fiscal law; Securities markets; Sovereign bonds; Fiscal risks; Global

Abstract

Local governments play a critical role in executing fiscal policies in China. Aside from providing basic public services, they undertook sizable public investment that has contributed to remarkable growth. Much of the large-scale fiscal stimulus since the global financial crisis was carried out through local governments. Along with public infrastructure investment, local governments have also contributed to the real estate boom through land development. In addition, research has attributed competition among prefectural local governments as a significant factor in China’s growth success (Song, Storesletten, and Zilibotti 2011).

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Cover Modernizing China
Modernizing China
Investing in Soft Infrastructure
ISBN:
9781513539942
Publication Date:
14 Jan 2017
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781513539942.071
Pages:
388