RETRACTED ARTICLE: Can Digital Finance Reduce Government Debt Pressure and Financing Constraints? The Impact of Digital Finance on Regional Systemic Financial Risk

Zhang, Yu

doi:10.1007/s13132-023-01451-1

Cited by 3 publications

(3 citation statements)

References 34 publications

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“…Moreover, apart from enhancing external supervision and implementing effective financial oversight measures, it is equally vital to enhance the internal infrastructure of financial institutions [ 16 ]. Specifically, it can effectively mitigate regional systemic financial risks through enhancing the internal infrastructure of financial institutions and implementing external supervisory policies simultaneously [ 17 ], which is also applicable to the implementation of rural financial risk management systems.…”

Section: Literature Reviewmentioning

confidence: 99%

Study on spatial distribution, regional differences and dynamic evolution of rural financial risk in China

Zhou,

2024

PLoS ONE

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Based on panel data from 2009 to 2021, covering 30 provinces in China, we have been constructed the Rural Financial Risk Index using the objective entropy weighting method to study rural financial risk in China systematically from the perspective of spatial distribution. Specifically, we discuss the spatial distribution, regional differences and dynamic evolution of rural financial risk across Chinese four different regions divided into the Northeast, East, Central and West. It’s found that Local government debt and Land transfer income are the two primary determinants influencing the level of rural financial risk in China. Furthermore, we conclude the ranking value of rural financial risk across four regions that the central exhibits the highest level, followed by the West, the East, and finally the Northeast, where the reasons for such ranking results as follows. Firstly, although the highest level of risk among provinces in the West is equivalent to that in the Central, there exists a smaller minimum rural financial risk in the former compared to the latter. Then, it should be noted that there’s a low-low agglomeration of rural financial risk in the Northeast, while it demonstrates a high-high agglomeration in the Central according to the Moran Index test analysis. Again, there’s a declining trend in rural financial risk disparity within the region and an upward trend is observed when comparing different regions (except the East vs West), especially increase largely between the Northeast and Central in past two years after analyzing the decomposition of Dagum Gini coefficient. Moreover, we study the absolute differences and dynamic evolution in different four regions through three-dimensional diagram of kernel density estimation, and it’s found that the change of rural financial risk in four regions moved to the right as a whole, while the tail distribution remains inconspicuous. The absolute difference is diminishing in the Northeast, and the two-level differentiation characteristics tend to weaken as a whole in the Central, with a disordered wave peak height observed in both the East and West. Finally, the article presents pertinent policy implications but limitations according to the research findings.

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Section: Literature Reviewmentioning

confidence: 99%

Study on spatial distribution, regional differences and dynamic evolution of rural financial risk in China

Zhou,

2024

PLoS ONE

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“…To further delve into the mechanisms through which the reform of the land reserve financing policy curtails local governments' implicit debt, this study takes inspiration from Zhang (2023) [35] and Fan et al (2020) [36] and constructs a triple-difference approach. The objective is to empirically examine whether the effects of the land reserve financing policy reform on local governments' implicit debt exhibit variations.…”

Section: Heterogeneity Analysismentioning

confidence: 99%

“…In the report of the 19th National Congress of the Communist Party of China (CPC), the primary task among the "three major battles" was identified as "preventing and defusing major risks", and the key point of realizing the aforementioned task is financial risk prevention, especially the risk prevention of local governments' implicit debt. According to statistics of the Ministry of Finance, the amount of China's local governments' explicit debt had reached CNY 35.06 trillion until the end of 2022, the year-on-year growth rate of which was 15%, and the growth rate of total local governments' debt had increased by 12.5 times compared to the end of 2009. According to the estimation of the International Monetary Fund, the amount of implicit debt in local governments' financing platforms could reach CNY 66 trillion by the end of 2022.…”

Section: Introductionmentioning

confidence: 99%

Has the Reform of Land Reserve Financing Policy Reduced the Local Governments’ Implicit Debt?

Wang,

Ge,

et al. 2023

Land

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Confronted with the expansion of local governments’ implicit debt and the associated risks induced by the practice of “land-based financing”, substantial alterations occurred in China’s land reserve financing policy during 2016–2017. These modifications led to an entire cessation of land reserve loans and the initiation of specialized bonds designated solely for land reserves. Empirical evidence, gathered through the approximate application of the difference-in-differences method, reveals that the reform of the land reserve financing policy can markedly reduce local governments’ implicit debt level. Based upon this foundation, the results of the triple-difference regression demonstrate that the diminution effect of the land reserve financing policy reform on local governments’ implicit debt is more pronounced in regions characterized by lower levels of marketization and more substantial legal financing constraints. This research enriches the comprehensive understanding of the impact of land reserve financing policy reform, possessing considerable referential value for the prevention and resolution of local governments’ implicit debt.

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Enhancing Financial Risk Prediction for Listed Companies: A Catboost-Based Ensemble Learning Approach

Lu,

2023

J Knowl Econ

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RETRACTED ARTICLE: Can Digital Finance Reduce Government Debt Pressure and Financing Constraints? The Impact of Digital Finance on Regional Systemic Financial Risk

Cited by 3 publications

References 34 publications

Study on spatial distribution, regional differences and dynamic evolution of rural financial risk in China

Study on spatial distribution, regional differences and dynamic evolution of rural financial risk in China

Has the Reform of Land Reserve Financing Policy Reduced the Local Governments’ Implicit Debt?

Enhancing Financial Risk Prediction for Listed Companies: A Catboost-Based Ensemble Learning Approach

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