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Local financial development and staffing levels in grassroots sports institutions

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  • Wang, Sai
  • Li, Zhiwei
  • Li, Zhuo

Abstract

This study examines whether local financial development increases the staffing levels of grassroots sports institutions in China. Using a panel of prefecture-level cities from 2010 to 2023, we find that financial development is positively and significantly associated with the logged staffing levels. Mechanism analysis suggests that financial development strengthens local fiscal expenditure capacity and facilitates the expansion of sports venues, both of which increase the feasibility and operational demand for staffing commitments. Heterogeneity analyses further show that the effect is stronger in non-Eastern cities and in cities facing higher fiscal pressure, indicating that finance plays a greater capacity-building role where constraints are binding.

Suggested Citation

  • Wang, Sai & Li, Zhiwei & Li, Zhuo, 2026. "Local financial development and staffing levels in grassroots sports institutions," Finance Research Letters, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:finlet:v:105:y:2026:i:c:s1544612326007671
    DOI: 10.1016/j.frl.2026.110239
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    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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