Research on Spatial Correlation Characteristics and Their Spatial Spillover Effect of Local Government Debt Risks in China

Scholars have proposed a series of methods, such as “sustainability local government debt”, to measure debt risks. However, these methods caused lot controversy. Based on macro balance sheet, this study uses an improved “distance distress” China’s risks and applies social network model identify the spatial correlation characteristics, well spillover effect. The results are follows: (1) data show multiple heterogeneous correlations for risks; (2) there some similarities between subgroups seven major geographic regions in China. links among randomly distributed external; (3) manifest “small world”, with decreasing transitivity since 2014; (4) two significant factors, positive impact competition is more obvious than division powers responsibilities; (5) effect from combination competition, responsibilities, intervention. This paper provides scientific basis obtaining deeper understanding risks, puts forward policy recommendations strengthen management.