Professor Minggui Yu, the Co-Director of the Base, has published a collaborative paper titled "Local government debt financing, crowding-out effect, and labor employment in enterprises" in Economic Research Journal, 2022.

Abstract: 
Taking A-share listed companies from 2007 to 2018 as samples, this paper examines the impact of local government debt financing on enterprise employment and its influencing mechanisms. The results show that local government debt financing has significantly inhibited enterprise employment. The main mechanism of this crowding out effect is financing constraint and the financialization of enterprises. Heterogeneity analysis shows that the crowding out effect of local government debt financing on enterprise employment is more pronounced for private enterprises, enterprises with more financing needs, and enterprises located in areas with financial market underdeveloped. This paper contributes to three stands of literature. Firstly, it provides a new perspective on how financing constraints affect enterprise employment from the perspective of local government debt financing. Secondly, it expands the relevant research on the influencing factors of non-financial enterprise financialization from the perspective of local government debt financing. Finally, it contributes the research on the microeconomic consequences of local government debt financing from the perspective of enterprise employment. The research results of this paper will provide theoretical basis and policy reference for preventing and resolving local government debt risks and promoting employment stability.

Key Words: Local Government Debt Financing; Employment; Crowding Out Effect; Financing Constraint; Financialization

Link: http://www.cesgw.cn/cn/mlInfo.aspx?m=20220309094605133049&n=20220329150849617168&tip=0

Teacher Profile

Minggui Yu, Dean, professor and doctoral supervisor of School of Finance, Zhongnan University of Economics and Law, Co-director of Innovation and Talent Base for Digital Technology and Finance. He has been included in the new century excellent talents to support the Ministry of Education plans, presided over a number of national natural science fund project. He has published more than 70 papers in Economic Research Journal, the Journal of Management World, China Economics Quarterly, China Industrial Economics, Financial Research Journal, Economic Modelling and other journals, and many papers have been selected to the top of the list of highly cited papers. He is also  the editor of journals such as Accounting and Finance.