Impact of Market-Oriented Local Government Financing Vehicles on Credit Financing: Evidence from China

Description

This replication package contains the data and code required to reproduce the empirical and quantitative results reported in the paper “Impact of Market-Oriented Local Government Financing Vehicles on Credit Financing: Evidence from China.” The package includes: 1. the dataset used for the empirical analysis; 2. the Stata do-file for reproducing all empirical tables and figures; 3. the Dynare mod-file for reproducing the DSGE simulation results.

Steps to reproduce

A. DSGE Model (Figure 2) ------------------------------------------------------------- Software: - MATLAB - Dynare Steps: 1. Install Dynare. 2. Add Dynare to the MATLAB path. 3. Set the working directory to the folder containing DSGE.mod. 4. Run the following command in MATLAB: dynare DSGE.mod Output: - Impulse response functions corresponding to Figure 2. B. Empirical Analysis (Tables 1–12 and Figures 3–6) ------------------------------------------------------------- Software: - Stata 17 or later Steps: 1. Place EM.dta and EM.do in the same folder. 2. Open EM.do in Stata. 3. Set the working directory as indicated in the do-file. 4. Run the entire do-file. Output: The do-file reproduces the empirical results in the following order: - Table 1: Summary statistics - Table 2: Baseline regression results - Table 3: DID-imputation robustness check - Table 4: Alternative robust estimators (DIDM and CSDID) - Table 5: Interactive fixed effects - Table 6: Financial performance channel - Table 7: Collateralization capacity channel - Table 8: Political connection channel - Table 9: Heterogeneity analysis (land value) - Table 10: Heterogeneity analysis (LGFs) - Table 11: Economic consequences (shareholding) - Table 12: Economic consequences (debt maturity) - Figures 3–6: Parallel trends and placebo tests

Institutions

• Ocean University of China

  Shandong, Qingdao
• Suzhou University of Science and Technology

  Jiangsu, Suzhou

Categories

Funders

• National Social Science Foundation of China

  Grant ID: Grant ID: 22BJL018

Licence