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Estimation Problems of the Local Government Debts Scale in China

  • Journal of Knowledge Information Technology and Systems
  • Abbr : JKITS
  • 2012, 7(6), pp.81-88
  • Publisher : Korea Knowledge Information Technology Society
  • Research Area : Interdisciplinary Studies > Interdisciplinary Research
  • Published : December 31, 2012

장내사 1 SANGWOOK KIM 2

1Heilongjiang Information Technology Vocational College
2배재대학교

Accredited

ABSTRACT

This paper analyse the estimation problems of the local government debts in China. As the China economic development, the concerns of the local government debt are increased. In particular, after 2008, because the scale of local government debt are increased, so the financial crisis also appeared. This paper classified the China government debts to four types, direct debt, contingent liability, visible debt, invisible debt. In the base of this classification, we summarized the China local government debts to six types. The banking loans of the urban construction investment company has biggest proportion. In local government debts, the banking loans occupied 80 percentages. As this structure characteristic, regards the local government debt problem as the financial problem. This paper summarized the four problems of local government debt estimation. First is the administration system problem. China has the four level administration system, central government, provincial government, urban government, and county government. The local government has three level. Second is the main body of the local government debt. Third is the relation bank between urban construction investment company. Fourth is the invisible debt problem.

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