Sustainable Financial Management of Local Capital Markets: A Cross National Comparison between China, Mexico, South Korea and the United States
嘉宾： Prof. Heidi Smith, PhD
This research study aims to explore what determines subnational debt levels and sovereign financial sustainability. Scholars argue that subnational fiscal capacity help local governments deliver better public services and provide public goods, which in turn helps to promote economic growth. The presentation comprised of two parts: The first provides solid understanding about the characteristics of administrative structure, management of subnational government debt, and structure of debt portfolio of each country. The second part presents an empirical test focused on the distinct difference in the administrative structure, fiscal capacity, and political-economic factors. Findings show that subnational fiscal sustainability improves when the central government has clear rules to intergovernmental transfers in place but increases with more (market) liberal policies, meanwhile when subnational governments have more fiscal capacity and less intergovernmental transfers they manage their debt more soundly.
Even though many developing countries seek to have more centralized control, efforts to create sound subnational capital market within their countries should come before control over the economy.
Bottom up approaches harden budget constraints only when central governments have clear intergovernmental rules in place and more (market) liberal policies.
Subnational governments with more fiscal capacity and less transfers will have more sustainable debt.
主 持 人：刘骊光 博士 (政府管理学院 资源与环境管理系副教授)