The impact of fiscal decentralization and intergovernmental competition on the local government debt risk: Evidence from China

Based on the data of explicit debt and implicit local governments in China from 2012 to 2020, this paper theoretically analyzes empirically tests spatial correlation effect fiscal decentralization intergovernmental competition government risk. It’s found that risk has obvious inertia time positive space, spending have a significant impact risk, as well spillover effect. The research very important policy implications for perfecting China’s system, standardizing among governments, preventing defusing risks.