Paper prepared for the 111th American Political Science Association (APSA) Annual Meeting, held in an Francisco, California, Sept 3-6, 2015.
Sustainable Financial Management of Local Capital Markets: A Cross National Comparison between China, Mexico, South Korea and the United States
Sept 4, 2015
Heidi Jane Smith
School of Policy, Government & International Affairs
George Mason University
Department of Public Policy and Administration
School of Public Service
Boise State University
School of Government
Central University of Finance and Economics (CUFE)
This study aims to explore what determines subnational debt levels and sovereign financial sustainability. Scholars argue that subnational fiscal capacity help local governments deliver better public services and provide public goods, which in turn helps to promote economic growth. The paper comprised of two parts: The first provides solid understanding about the characteristics of administrative structure, management of subnational government debt, and structure of debt portfolio of each country. In the second part, we test our hypotheses focused on the distinct difference in the administrative structure, fiscal capacity, and political-economic factors. This study finds that even with distinctive levels of administrative abilities and management styles, historical legacies of how local governments operate determines how governments manage their debt policies.
Keywords: subnational government debt, local finances, administrative structure, fiscal capacity, financial management