IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v81y2025ics1544612325007172.html
   My bibliography  Save this article

The impact of local government debt on rural green transformation

Author

Listed:
  • Jia, Nan
  • Zhang, Hongli
  • Ma, Weigang

Abstract

This study examines the impact of local government debt on rural green economy transition through panel data analysis. The results show that there is an inverted U-shaped non-linear relationship between local government debt and rural green economy transition, with debt facilitating the transition at low rural development levels but negatively affecting it at high development levels. The level of rural development is an important threshold variable that influences the mechanism of action of debt. Rural capital allocation plays a mediating role at low levels of development, but the mediating effect is not significant at high levels of development. It is suggested that local governments should reasonably control the scale of debt according to the stage of rural development, optimise the allocation of funds, improve the efficiency of investment, and formulate fiscal policies in a phased manner, so as to promote the sustainable development of rural green economy.

Suggested Citation

  • Jia, Nan & Zhang, Hongli & Ma, Weigang, 2025. "The impact of local government debt on rural green transformation," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007172
    DOI: 10.1016/j.frl.2025.107458
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325007172
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107458?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007172. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.