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Local government debt management system, digital finance, and regional economic resilience: A quasi-natural experiment

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  • Ding, Qiaoying
  • Deng, Yanfang

Abstract

In today's complex and volatile economic environment, regional economies face numerous uncertainties, making the enhancement of regional economic resilience a key issue for ensuring stable and sustainable development. Using provincial data from China for 2009–2023, this paper employs multiple empirical methods to explore the intrinsic linkages and mechanisms among local government debt management systems (Reform_DID), digital finance, and regional economic resilience. The findings indicate a significant positive relationship between the Reform_DID and regional economic resilience; that is, a rational and well-designed debt management system helps strengthen regional economic resilience. Further analysis shows that the promotion effect of the debt management system on regional economic resilience is heterogeneous between regions with high and low levels of human capital. Meanwhile, the development of digital finance plays a significant mediating role in the relationship between the debt management system and regional economic resilience, with the strength of this mediation differing between regions with high and low fiscal self-sufficiency.

Suggested Citation

  • Ding, Qiaoying & Deng, Yanfang, 2026. "Local government debt management system, digital finance, and regional economic resilience: A quasi-natural experiment," Finance Research Letters, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finlet:v:91:y:2026:i:c:s1544612325025371
    DOI: 10.1016/j.frl.2025.109288
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    References listed on IDEAS

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