Market-Oriented Transformation and Development of Local Government Financing Platforms in China: Exploratory Research Based on Multiple Cases

Abstract

In recent years, the disorderly development of local government debt financing and local government financing platforms (GFP) in China has brought huge government debt risks. In order to control the debt increment caused by illegal financing of the GFP, the state has issued a series of documents. Under the new economic form, how to determine the position, choose the road, and plan the path of market-oriented development for high-quality economic development is critical to the GFP. This paper is committed to solving the key points and transformation paths of market-oriented transformation of the GFP. (1) On the basis of literature research, it analyzes the necessity, feasibility, and current transformation difficulties of market-oriented transformation of the GFP. (2) It defines the concept of the GFP and the concept of market-oriented transformation of the GFP. (3) It collates and analyzes the real cases of market-oriented transformation of four local government (county-level and above) financing platforms, studies the key points of transformation, and systematically summarizes the path of market-oriented transformation from three aspects: the goal, work plan, and implementation scheme of transformation and development. (4) Based on the idea of finding problems, diagnosing problems, optimizing, and improving, we put forward optimization strategy suggestions.

Keywords

• market-oriented transformation and development
• financing platform
• multiple cases study
• government