Determinants of the Urban Investment Bonds in China

  • Daike Li
  • Yang ChenEmail author


This chapter investigates the determinants of the issuance of urban investment bonds (UIBs) across 31 provinces in China during the period of 2005–2013 using a spatial autoregressive model. We find that the provincial governments tend to compete with or imitate their neighboring provinces in bond issuance. The neighborhood can be defined in terms of either geographical proximity or economic performance. We also find that the fiscal gap, governments’ investments in housing and public welfare, and bond level in the previous year have positive association with the issuance of UIBs in China.


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© The Author(s) 2018

Authors and Affiliations

  1. 1.International Business School SuzhouXi’an Jiaotong-Liverpool UniversitySuzhouChina

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