Huang, Yi; Pagano, Marco; Panizza, Ugo - 2019
In China, between 2006 and 2013, local public debt crowded out the investment of private firms by tightening their … funding constraints, while leaving state-owned firms' investment unaffected. We establish this result using a purpose …-built dataset for Chinese local public debt. Private firms invest less in cities with more public debt, the reduction in investment …
