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Fiscal Deficit and Debt Conditions for China

Author

Listed:
  • YINGQIU LIU
  • HUNG-GAY FUNG
  • ZIJUN WANG

Abstract

This study examines the government fiscal deficit and debt rates in China. We utilize a theoretical framework to develop the government budget identity and the public deficit-debt models. This approach gives a theoretical basis to analyze the fiscal deficit and debt rates in China. Using a vector autoregressive analysis, the study empirically investigates the relationship between deficit and debt rates and sheds light on their future values for the Chinese economy.

Suggested Citation

  • Yingqiu Liu & Hung-Gay Fung & Zijun Wang, 2005. "Fiscal Deficit and Debt Conditions for China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 41(5), pages 56-74, October.
    • Handle: RePEc:mes:emfitr:v:41:y:2005:i:5:p:56-74
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