Empirical Analysis of the Efficiency of Provincial Debt Expenditure in China

Abstract

Improving the efficiency of local government debt expenditure is the key to preventing and resolving local debt risks in China. Using a three-stage SBM-DEA model, a input-output index system was constructed to calculate and analyze the efficiency of government debt expenditure in 30 provinces and cities (districts) across the country. The results showed that the overall level of local government debt expenditure efficiency in the country was relatively high; There is a significant difference in the efficiency of local debt in the eastern, central, and western regions. The efficiency of local debt expenditure in the eastern region has significant advantages, while the efficiency of local debt expenditure in the western region urgently needs to be improved; The degree of financial deepening, population size, and local debt expenditure efficiency are significantly positively correlated, while fiscal expenditure decentralization is negatively correlated with local debt expenditure efficiency.