Impact of Local Official Corruption on Local Government Debt in China: The Mediating Role of Government Investment Efficiency

In the process of issuing and using local government debt, officials may be corrupted by self-interest into inappropriately increasing bond supply, leading to excessive expansion debt an increase in risk. Adopting perspective investment efficiency, this paper employs a piecemeal causal steps approach analyze influence official corruption on debt. The results from panel data 30 provinces China show that triggers A mediation analysis reveals effect operates impairing efficiency. An regional heterogeneity further shows impact is weaker or even disappears developed comparison underdeveloped regions, which indicates anti-corruption campaign supports management, especially regions. This not only explains relationship between but also provides new ideas for management.