The Empirical Research on Local Government Debt Management Institution in China

With expansion of the size of the China’s local government debt,many governments have issued the local govern ment debt management regulation.These provisions from different levels of local government have many differences from the content to the form.This paper collects 28 management institutional samples of the local government and analyses them.Ac cording to the theory of institutional change and the realistic requirement of financial capital management in local governments,this paper proposes that the local government debt institution should be formulated by provincial government and the executive detailed rules should be made by government below the provincial level.Both of these constitute the institutional system of lo cal government debt management in China.This paper also designs content framework of the provincial government debt man agement institution,aiming at providing guidance which can manage the debt behavior and use debt funds effectively.