Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

4-2025

Abstract

Investment, export, and consumption have been viewed as the three driving forces behind economic development in China. Among these, investment has remarkably contributed to the urbanization in the context of China's sustained growth and development. Urbanization involves the mergingof large and medium-sized cities with surrounding areas, renovation of shantytowns and aging urban neighborhoods, and transformation of rural regions into urban areas, culminating in the establishment of a unified market. Such advancements have promoted infrastructure projects that are spearheadedby local governments and aligned with urbanization, thus catalyzing the growth of China's real estate industry, stimulating the Chinese economy, andextending the urbanization-related supply and industry chains. Consequently, the economy has experienced significant development influenced by the wealth effects arising from asset price increases attributed to infrastructure investments.

Currently, China's urbanization rate stands at 66.16%, indicatingpotential for further growth. Encouragingly, the government has set goals for peak carbon dioxide emissions and carbon neutrality alongside urbanization, which reflects a national commitment to sustainable development. China has not compromised on environmental and social governance in the name of economic progress; the principle that "lucid waters and lush mountains are invaluable assets" has gradually emerged as a fundamental national policy.

In recent years, the interplay of global political and economic factors, coupled with the pandemic, has influenced national economic development. This has resulted in asset price fluctuations, prompting both central and local authorities to confront the rising burden of local government debt. Among the key components of local government liabilities are infrastructure-orientedurban investment bonds issued through government-backed financingplatforms. These bonds serve as important investment management tools. Fiscal policy impacts the local economy primarily through instruments like urban investment bonds. The economic downturn has compelled governments and the public to reassess the traditional relationship between investment development models and sustainable development. Sustainable urbandevelopment directly affects the livelihoods and well-being of the public. What are the mechanisms underlying the relationship between sustainable urban development and urban debt? This question leads to the topic of this study: the impact of sustainable urban development on urban investment bondissuance. The study focuses on the three core variables: interest rates, issuance scale, and duration of urban investment bonds.

A literature review reveals that existing research has concentrated onthe financing costs of urban investment bonds, with little attention given totheir scale and duration. This study constructs a theoretical frameworkutilizing institutional incentive theory, sustainable development theory, signaling theory, government management theory, and spatial political economy theory to analyze the mechanisms through which sustainable urbandevelopment affects urban investment bond issuance.

In this study, sustainable urban development is treated as the independent variable, while urban investment bond issuance is designated as the dependent variable. Several dimensions of urban investment bonds are examined, including scale, interest rates, duration, purpose, default rate, and actual investment efficiency. This analysis focuses on core variables of scale, interest rates, and duration, facilitating a comprehensive investigation into the relationship between sustainable urban development and urban investment bonds, ultimately uncovering the mechanisms governing the interactionbetween the independent and dependent variables.

This study seeks to demonstrate a significant correlation betweensustainable urban development and urban investment bond issuance throughdata analysis and results discussion, presenting this correlation in terms of influencing mechanisms. The research significance is explained in two aspects. Firstly, at this stage of economic development, the urbanization in China is irreversible, yet there remains a need to establish goals and systems for sustainable urban development to underpin high-quality development. Secondly, the prudent, rational, and effective use of debt and investment instruments is crucial for sustainable urban development, as both factors exert mutual influence. Therefore, one of the objectives of this study is to provide a scientific and objective analysis of this influencing mechanism. The findings will provide actionable insights for diverse stakeholders, offering boththeoretical and practical reference value.

From a macro perspective, sustainable urban development serves as the cornerstone of national sustainable development strategies; froma microperspective, sustainable urban development can be understood as a city's system establishment and planning in relation to environmental, social, andgovernance (ESG).

Empirical results indicate that under the primaryvariable—environmental factors, the secondary variable forest cover rate is significantly positively correlated with the duration of urban investment bonds. Additionally, under the primary variable—social factors, secondary variables including income gap, social security expenditure, education expenditure, andhealthcare expenditure considerably affect the scale and issuance interest rates of bonds. Regions with higher governance levels tend to exhibit lower interest rates and larger scales.

Keywords

sustainable urban development, urban investment bonds, urban ESG

Degree Awarded

Doctor of Business Administration (Accounting and Finance)

Discipline

Accounting | Urban Studies and Planning

Supervisor(s)

TU, Jun

First Page

1

Last Page

120

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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