The Impact Mechanism of Informatization Level on Local Government Contingent Debts

In recent years, local government contingent debts have received more and more attention from entities and scholars. In order to explore the impact factors of local government contingent debts, this paper empirically tests the relationship of informatization level on local government contingent debts by using the data of 31 provinces in china during 2007–2018. The study finds that the informatization level is significantly negatively correlated with local government contingent debts, indicating that informatization level development can inhibit the formation of local government contingent debts. Further research finds that internal agency behavior and external social capital play an intermediary transmission function in the process of informatization level affecting local government contingent debts, indicating that informatization level has an inhibitory effect on local government contingent debts by inhibiting local officials agency behavior and expanding external social capital. The research conclusions of this article not only enrich the impact factors of local government contingent debts, but also provide important reference value for policy makers.