Understanding local government debt financing of infrastructure projects in China: Evidence based on accounting data from local government financing vehicles

Drinking Poison to Quench Thirst: Local Government Land Financial Dependence and Urban Innovation Quality

“…Unreasonable increases in real estate prices drive the creation of real estate bubbles, which in turn increase the probability of triggering systemic risks in the financial system [54]. On the other hand, to expand their business scale, real estate enterprises obtain loans from financial institutions through land mortgage financing [55,56]. The systemic risk in the financial sector is magnified again when there is an irrational rise in land prices and when financial institutions hold a large number of loans financed by land as collateral [54].…”

“…Ceteris paribus, LGLFD deteriorates the institutional environment, thereby inhibiting UIQ. mortgage financing [55,56]. The systemic risk in the financial sector is magnified again when there is an irrational rise in land prices and when financial institutions hold a large number of loans financed by land as collateral [54].…”