role of rising rates of investment. Because labor reallocation across sectors, TFP growth at the sector level and … investment are all inter-related, simple growth decompositions that are often used in the literature are not appropriate for … continues to absorb more than half of all fixed investment. If capital had been allocated efficiently, China could have achieved …

In China, local public debt issuance between 2006 and 2013 crowded out investment by private manufacturing firms by …-level investment ratio of domestic private manufacturing firms. Instrumental variable regressions indicate that this link is causal …. Second, local public debt has a larger negative effect on investment by private firms in industries more dependent on …