The Impact of Borrowing Debt on the Efficiency Loss of Municipal Infrastructure Investment and Construction
Borrowing debt has impacted on the financing effect and governance effect of investment entities. Borrowing debt has become an important financing channel for the investment and construction of municipal infrastructure in China. In this paper, panel data from 2003 to 2018 in cities above the prefect...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Hindawi Limited
2023-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2023/7638503 |
| _version_ | 1811158534221463552 |
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| author | Xiaojie Li Hao Li Fei Qiu |
| author_facet | Xiaojie Li Hao Li Fei Qiu |
| author_sort | Xiaojie Li |
| collection | DOAJ |
| description | Borrowing debt has impacted on the financing effect and governance effect of investment entities. Borrowing debt has become an important financing channel for the investment and construction of municipal infrastructure in China. In this paper, panel data from 2003 to 2018 in cities above the prefecture level in China are used to study the impact of borrowing debt on the efficiency loss of municipal infrastructure investment and construction. First, the results indicate that financing constraints have a greater impact than agency costs for the investment and construction of municipal infrastructure in China. Second, borrowing debt can effectively reduce the efficiency loss of municipal infrastructure investment and construction due to financing constraints. Third, the governance effect of borrowing debt is not very positive, but the rigid repayment of debt and interest to international banks will play some positive governance effects in the later stage. |
| first_indexed | 2024-04-10T05:24:54Z |
| format | Article |
| id | doaj.art-856bacc1e6104fceb512c00bbe37d1d4 |
| institution | Directory Open Access Journal |
| issn | 1607-887X |
| language | English |
| last_indexed | 2024-04-10T05:24:54Z |
| publishDate | 2023-01-01 |
| publisher | Hindawi Limited |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj.art-856bacc1e6104fceb512c00bbe37d1d42023-03-08T00:00:43ZengHindawi LimitedDiscrete Dynamics in Nature and Society1607-887X2023-01-01202310.1155/2023/7638503The Impact of Borrowing Debt on the Efficiency Loss of Municipal Infrastructure Investment and ConstructionXiaojie Li0Hao Li1Fei Qiu2Zhejiang Wanli UniversityZhejiang Wanli UniversityZhejiang Wanli UniversityBorrowing debt has impacted on the financing effect and governance effect of investment entities. Borrowing debt has become an important financing channel for the investment and construction of municipal infrastructure in China. In this paper, panel data from 2003 to 2018 in cities above the prefecture level in China are used to study the impact of borrowing debt on the efficiency loss of municipal infrastructure investment and construction. First, the results indicate that financing constraints have a greater impact than agency costs for the investment and construction of municipal infrastructure in China. Second, borrowing debt can effectively reduce the efficiency loss of municipal infrastructure investment and construction due to financing constraints. Third, the governance effect of borrowing debt is not very positive, but the rigid repayment of debt and interest to international banks will play some positive governance effects in the later stage.http://dx.doi.org/10.1155/2023/7638503 |
| spellingShingle | Xiaojie Li Hao Li Fei Qiu The Impact of Borrowing Debt on the Efficiency Loss of Municipal Infrastructure Investment and Construction Discrete Dynamics in Nature and Society |
| title | The Impact of Borrowing Debt on the Efficiency Loss of Municipal Infrastructure Investment and Construction |
| title_full | The Impact of Borrowing Debt on the Efficiency Loss of Municipal Infrastructure Investment and Construction |
| title_fullStr | The Impact of Borrowing Debt on the Efficiency Loss of Municipal Infrastructure Investment and Construction |
| title_full_unstemmed | The Impact of Borrowing Debt on the Efficiency Loss of Municipal Infrastructure Investment and Construction |
| title_short | The Impact of Borrowing Debt on the Efficiency Loss of Municipal Infrastructure Investment and Construction |
| title_sort | impact of borrowing debt on the efficiency loss of municipal infrastructure investment and construction |
| url | http://dx.doi.org/10.1155/2023/7638503 |
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