Local Government Debt, Financial Circle, and Sustainable Economic Development

Local government debt is the biggest “gray rhino” of China’s economy and one most significant factors affecting sustainability economic growth. We use macroeconomic data real development level local from 2000 to 2020 investigate impact on using spatial Durbin model, focusing scale in jurisdictions non-jurisdictions intermediation effect finance under geospatial correlation characteristics development. The results show that between prevails deepens over time. China has exceeded a reasonable threshold, crowding-out expansion obvious not limited by jurisdictions, with spillover effects. Financial marketization can effectively mitigate economy. These findings provide useful references for mapping correlated China, preventing risks high leverage financial systemic risks, providing effective insights other countries resolve problems, prevent crises, promote