TY  - UNPD
A1  - Huang, Yi
A1  - Pagano, Marco
A1  - Panizza, Ugo
T1  - Local crowding out in China
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 632
N2  - In China, between 2006 and 2013, local public debt crowded out the investment of private firms by tightening their funding constraints, while leaving state-owned firms’ investment unaffected. We establish this result using a purpose-built dataset for Chinese local public debt. Private firms invest less in cities with more public debt, the reduction in investment being larger for firms located farther from banks in other cities or more dependent on external funding. Moreover, in cities where public debt is high, private firms’ investment is more sensitive to internal cash flow, also when cash-flow sensitivity is estimated jointly with the probability of being credit-constrained.
T3  - CFS working paper series - 632 
KW  - investment
KW  - local public debt
KW  - crowding out
KW  - credit constraints
KW  - China
Y1  - 2019
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/51587
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-515873
UR  - https://ssrn.com/abstract=3477593
IS  - 15 September 2019
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -