Author(s)

Huang Zheyuan ¹

Affiliation(s)

¹ School of Economics, Guangxi University, Nanning, Guangxi, China

Corresponding Author

Huang Zheyuan

ABSTRACT

After the formal entry into force of the Regional Comprehensive Economic Partnership (RCEP), China has further deepened and upgraded its multi-disciplinary cooperation with various regions. As there is a correlation between local government debt and local foreign trade, the study of the correlation effect between the two has a positive significance for local governments to plan relevant economic and financial policies. This paper firstly establishes an endogenous growth model considering local government debt and foreign trade, so as to analyse the impact of local government debt on foreign trade. Secondly we also estimate the size of local government debt by using different forms of local government debt funds, and at the same time adopt the break even method to measure and make comparisons. Finally, a regression model is established to empirically test the relationship between local government debt and total foreign trade. From the results of the empirical test, the coefficient of local government debt scale on total foreign trade is significantly negative, indicating that the increase of local government debt scale has a direct negative effect on local foreign trade.

KEYWORDS

Local government debt, Foreign trade, RCEP, Influence effect

CITE THIS PAPER

Huang Zheyuan, Research on the Influence Effect of Local Government Debt and Foreign Trade. Information Systems and Economics (2024) Vol. 5: 39-50. DOI: http://dx.doi.org/10.23977/infse.2024.050206.

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