Λεπτομέρειες βιβλιογραφικής εγγραφής
| Τίτλος: |
Administrative decentralization and credit pricing: evidence from China’s separately listed cities. |
| Συγγραφείς: |
Li, Sidong1 (AUTHOR) sdli@shu.edu.cn |
| Πηγή: |
Applied Economics Letters. Sep2026, p1-13. 13p. 5 Illustrations. |
| Θεματικοί όροι: |
*Public sector, *Debt service, *Bond market, Credit spread, Decentralization in government, Institutional environment, Economic conditions in China, Cities & towns |
| Γεωγραφικοί όροι: |
China, Qingdao (China), Ningbo Shi (China), Xiamen Shi (China), Shenzhen (Guangdong Sheng, China : East), Dalian (Liaoning Sheng, China) |
| Περίληψη: |
This paper examines whether administrative decentralization lowers borrowing costs. Exploiting China’s SLCs (separately listed cities) – Shenzhen, Ningbo, Qingdao, Dalian, and Xiamen – as a within-province comparison, we compare SLCs with non-SLCs (the rest of their provinces) sharing the same provincial bond framework. Using province-by-year fixed effects on 2,876 bonds (2021–2025), we find that SLCs carry a positive and significant credit spread premium of approximately 0.0383% points. This premium survives leave-one-pair-out sensitivity analysis, exact permutation test (252 assignments, p = 0.028), wild cluster bootstrap (p = 0.010), and a battery of alternative specifications including province-by-quarter fixed effects, within-pair differenced specifications, and issuer-year and province-year weighted regressions. Heterogeneity analysis reveals that the premium is larger in provinces with low fiscal sustainability and general bonds, consistent with a “guarantee hierarchy fragmentation” interpretation: SLCs are excluded from the provincial implicit guarantee network that benefits non-SLCs. Our findings challenge the conventional view that fiscal autonomy automatically reduces borrowing costs, highlighting the role of institutional design in credit market discipline. [ABSTRACT FROM AUTHOR] |
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