Research on The Sustainability and Rapid Growth of Local Government Debt

Zhilong Li, Zijie Wang and Xiangrong Wang ()
Additional contact information
Zhilong Li: Shandong University of Science and Technology, Financial Engineering Research Institute
Zijie Wang: Shandong University of Science and Technology, Financial Engineering Research Institute
Xiangrong Wang: Shandong University of Science and Technology, Financial Engineering Research Institute

A chapter in Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026), 2026, pp 350-364 from Springer

Abstract: Abstract As an important source of local government finance, the malignant expansion of debt financing has become a pressing fiscal issue that China must urgently address. Through literature analysis and data comparison, this paper reveals the current state of debt growth and the resulting social problems, providing an in-depth examination of the urgency to curb its malignant expansion. The findings indicate that the sustainability of debt financing faces severe challenges. The paper proposes practical and feasible recommendations for the government to mitigate the excessive growth of debt through financial instruments such as asset securitization and asset leasing, with the aim of maintaining the sustainability of local debt financing and preserving fiscal balance.

Keywords: Debt Growth; Debt Sustainability; Urgency of Debt Resolution; KMV Model; Asset Securitization (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-642-5_36

Ordering information: This item can be ordered from
http://www.springer.com/9789462396425

DOI: 10.2991/978-94-6239-642-5_36

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().