Local Government Debt, Local Government Financing Platforms, and Green Development Efficiency

Round 1

Reviewer 1 Report

1. Abstract: more succinct refining of the abstract to exactly capture the focus, methodology process, key findings, and implications from the research would increase the abstract’s effectiveness in revealing the study’s essence and importance. 

2. Introduction: The Introduction successfully identifies China’s economic development and its challenges as shown in green development. However, the study could pinpoint precisely how Local Government Debt (LGD) influences Green Development Efficiency (GDE) more specifically, providing a clearer path to the research’s purpose. 

3. Literature Review and Theoretical Assumptions: The literature review, while quite comprehensive, lacks detailed discussion of studies that have directly studied LGD and GDE. Presenting the exact research gap through which this study will contribute would enhance its value to the existing literature. The research gap is also rather concealed in the introduction and literature review sections. Articulating the research gap more clearly at the beginning of the study would set up the study’s reasons for being. 

4. Model construction and data analysis: The methodology’s model selection and variable justification is done, but the study lacks discussion of the rationale behind why the selected models and variables used. Expanding this reasoning would strengthen the methodology. The dataset is broad enough, but developing criteria for why specific data sources were chosen could help bolster the study’s reliability. 

5. Empirical Results and Analysis: The results of the study present a strong analysis of the relationship between LGD and GDE and further research studies that compare the study with such relationships could be insightful. 

6. Conclusion and policy recommendations: The conclusion summaries its purpose well but does not tie this purpose back down tightly to the empirical analysis. 

Policy implications for the study could be made more present and authoritative through a more direct connection with the study’s empirical results and policies the suggestion that could operationalize in China’s economy. Finally, the practical implications of this study are interesting but could be more thorough and engaging in the face of possible objections, etc.

The manuscript appears to be well-written with no significant issues in English language use that would impede understanding.

Author Response

Dear reviewer:

Thank you for your decision and constructive comments on my manuscript. We have carefully considered the suggestion of Reviewer and make some changes. We have tried our best to improve and made some changes in the manuscript.Please see the attachment.

The red part that has been revised according to your comments. Revision notes, point-to-point, are given as follows:

Comments1:Abstract: more succinct refining of the abstract to exactly capture the focus, methodology process, key findings, and implications from the research would increase the abstract’s effectiveness in revealing the study’s essence and importance.

Response1:Thank you for the Abstract suggestion.The first half of the abstract has been streamlined to better highlight the research object and value of this article. At the same time, minor modifications were made to the latter part to make the abstract more coherent.

Comments2:Introduction: The Introduction successfully identifies China’s economic development and its challenges as shown in green development. However, the study could pinpoint precisely how Local Government Debt (LGD) influences Green Development Efficiency (GDE) more specifically, providing a clearer path to the research’s purpose. 

Response2:Thank you for pointing this out.We have added a fifth paragraph in this section to reveal the direct relationship between LGD and GDE. The indirect relationship between the two will be demonstrated in the subsequent theoretical analysis section. And at the end of the sixth paragraph, a summary and analysis of the shortcomings of existing research were made according to the suggestions.

Comments3: Literature Review and Theoretical Assumptions: The literature review, while quite comprehensive, lacks detailed discussion of studies that have directly studied LGD and GDE. Presenting the exact research gap through which this study will contribute would enhance its value to the existing literature. The research gap is also rather concealed in the introduction and literature review sections. Articulating the research gap more clearly at the beginning of the study would set up the study’s reasons for being. 

Response3:Thank you for pointing this out.In the literature review section, we added a discussion on the relevant studies of LGD and GDE, and emphasized the research gap in the summary

Comments4:Model construction and data analysis: The methodology’s model selection and variable justification is done, but the study lacks discussion of the rationale behind why the selected models and variables used. Expanding this reasoning would strengthen the methodology. The dataset is broad enough, but developing criteria for why specific data sources were chosen could help bolster the study’s reliability. 

Response4:Thank you for pointing this out.We have added explanations for the use of this model and related variables in the final section of 3.2.2. Mainly focused on the selection of modules and the selection of data representation methods, with certain explanations provided.

Comments5:Empirical Results and Analysis: The results of the study present a strong analysis of the relationship between LGD and GDE and further research studies that compare the study with such relationships could be insightful. 

Response5:Thank you for pointing this out.We have added suggestions for future research in section 4.4, hoping to provide insights for future research.

Comments6:Conclusion and policy recommendations: The conclusion summaries its purpose well but does not tie this purpose back down tightly to the empirical analysis. Policy implications for the study could be made more present and authoritative through a more direct connection with the study’s empirical results and policies the suggestion that could operationalize in China’s economy. Finally, the practical implications of this study are interesting but could be more thorough and engaging in the face of possible objections, etc.

Response6:We have deepened the application of research conclusions in policy recommendations, making the proposal more in line with the conclusions drawn in this article.

Author Response File: Author Response.docx

Reviewer 2 Report

The paper is quite interesting and innovative in a field that it 's only at the beginning. Two points:

1. for a worldwide ajudience, it should be better to gvive mote information about the degree of etherogeneity of the Chinese provinces that hvave been analysed. Is it possible that this variety of climate, social and economic conditions could affect the final fresults?

2. The analysis is based on panel data. Hence it is a static analysis. Is it possible to speculate on the type of trend in progress regarding the negative impact of LGD on GED? In other pariole, is it possible to understand whether this negative impact is increasing or decreasing?

I have to say that I'm not very much skilled on two-way fixed-effect model for empirical analysis.

Author Response

Dear reviewer:

Thank you for your decision and constructive comments on my manuscript. We have carefully considered the suggestion of Reviewer and make some changes. We have tried our best to improve and made some changes in the manuscript.Please see the attachment.

Comments1:for a worldwide ajudience, it should be better to gvive mote information about the degree of etherogeneity of the Chinese provinces that hvave been analysed. Is it possible that this variety of climate, social and economic conditions could affect the final fresults?

Response1:Thank you for pointing this out.The heterogeneity analysis in this article chooses to analyze the impact of China's geographical location differences on the research object. The reason for dividing by the eastern, central, and western regions is not only due to differences in geographical location, but also because China's economy, culture, and climate are basically divided according to this trend.

Comments2:The analysis is based on panel data. Hence it is a static analysis. Is it possible to speculate on the type of trend in progress regarding the negative impact of LGD on GED? In other pariole, is it possible to understand whether this negative impact is increasing or decreasing?

Response2:The model used in this article can infer the trend types of LGD on GDE, and it has been included in the empirical results. However, it is difficult to understand whether this negative impact is increasing or decreasing with this model, and additional models need to be introduced for further research.

Author Response File: Author Response.docx

Round 2

Reviewer 1 Report

The efforts of the authors are sufficient.