Institutional Cause and Policy Effect of Local Authorities' Bailout Measures

DOI

10.2991/sschd-16.2016.6How to use a DOI?

Keywords

local finance, macro-control, fiscal policy.

Abstract

Economic growth has been considered to be central authorities' function in traditional theory. However, after sub-prime mortgage crisis broke out in USA in 2007 and threatened the world economy, provincial and municipal governments in China actually released measures positively to stimulate economic growth. The institutional reasons of local governments' behavior are: Faced with more severe financial crisis, central authority implements institutional innovations with the aid of local governments; decentralization reform strengthens fiscal incentives of local authorities and their investment impulsion; the unique urban management model causes the local authorities highly care about real estate market; regional separation strengthens the regulatory effect of local governments. The local authorities' behavior possibly leads to investment-pulling growth, increased fiscal risk and environmental pressure in future.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Hui Mao
AU  - Sheng-Nan Zhang
PY  - 2015/12
DA  - 2015/12
TI  - Institutional Cause and Policy Effect of Local Authorities' Bailout Measures
BT  - Proceedings of the 2nd Annual International Conference on Social Science and Contemporary Humanity Development
PB  - Atlantis Press
SP  - 28
EP  - 33
SN  - 2352-5398
UR  - https://doi.org/10.2991/sschd-16.2016.6
DO  - 10.2991/sschd-16.2016.6
ID  - Mao2015/12
ER  -