The Research About Government Investment Efficiency

Using investment functions increasingly becomes an important means for government intervention in the economy. In response to the 2008 financial crisis, the central government has formulated a proactive fiscal policy and loose monetary policy to stimulate economic growth through investment. In this loose monetary policy, the government itself also acts as a principal investor, large-scale borrowing from financial institutions. Meanwhile the levels of government debt increase sharply, resulting in the debt default risk increase sharply. If the government can not get investment efficiency guaranteed, government debt default risk will outbreak, resulting in a huge waste of social resources. Investment projects as the main carrier of government investment, the ultimate success or failure is directly related to the level of government investment efficiency. So, if through an effective mechanism to ensure the quality and duration of project construction to reduce project costs, the government investment efficiency can be improved. Project management model is one such mechanism. Choosing the appropriate government investment project management model canensure the smooth implementation of government investment projects and improve the efficiency of government financial resources.As different investors, the central government and local governments is different in the functions of the goal. Central government investment goal includes economic stability, economic development, economic structure optimization, full employment, etc. Local government investment goal is mainly to maximize the development of the local economy and local fiscal revenue, so most local governments are prone to pursuing local investment expansion and economic growth. Compared with the central government, local governments are more impulsive to invest. Meanwhile, after fiscal decentralization reforms, the central government has more revenue, and local governments have the limited financial resources. Therefore if we can design a sound project management, ensuring funds needed and the construction quality of projects,,local government in the exercise of the investment projects can greatly improve the efficiency.Due to market failure, private investors are not generally reluctant to provide public goods, and the government primarily responsibility is to increase the supply of public goods by investing. Now, in some areas of quasi-public goods supply, more and more government investment projects using private capital for construction and operation of cooperation, it eases the financial pressure on government finances, and enhances the efficiency of investment projects, meeting the public demand for public goods and public services.However, at this stage, there are blind investments, ineffective investments, "short-lived projects," "shabby projects," project corruption. Behind these phenomena, it is the imperfections of local government investment project management model.In view of this, this dissertation research project management model to improve government efficiency of investment role, trying to find the future direction of local government investment project management model improvement with a view to improve the efficiency of local government investment projects, then play better government investment in economic development in the leading role. The main contents of this dissertation include:First, this dissertation describes the theoretical basis for local government investment, including public choice theory, public goods theory, and agency theory, to guide future research work. The concept of local government, local government investment projects were defined. According to government function of local government, this doctoral dissertation reclassified the local government investment projects. The local government investment projects are divided into general competitive projects, key competitive projects, competitive infrastructure projects, non-operating items (including non-competitive basis for projects, pure public projects), competitive and other public projects.Second, this dissertation generalizes the domestic and abroad literature about the local government investment project management model. By combing this doctoral dissertation has found that abroad research about the local government investment project management model started earlier, and developed countries and regions have formed a more mature management mode. While domestic research started late, it is still in the exploratory stage depth. The domestic scholars has studied better in investment decisions, investment government investment projects, bidding, contract management, project approval, incentive and restraint mechanisms, research project management and other aspects of the life cycle, and studied more about the government procurement mode, System Mode, government and social capital is greater cooperation model at the same time. However, these studies are partial, limited to certain aspects of project management or a certain type of management, and there is no pattern to clarify the relationship between the various management, as well as their range of applications. There are still differences in understanding about the agent system with the government and PPP. Some scholars think that PPP is one of the agent systems, while the others think PPP and the agent system are different management models, and the study of PPP is focused on financing function, and less on its research management.Third, this dissertation has calculated the China’s government investment efficiency. This dissertation divided government investment efficiency into macro efficiency and micro efficiency. The macro efficiency of government investment means that the government investment should be conducive to overall economic growth. The micro efficiency of government investment means efficiency level of the government investment fund, usually measured by cost-benefit analysis. This dissertation use the DEA model to calculate the macro efficiency of government investment, found that government investment timeliness and regional differences. While this dissertation apply and calculate specific case of government investment projects under different government investment project management model, in order to find out the effects of different modes of government investment project management for efficiency..Fourth, this dissertation has proved the s project management mode effects efficiency of government investment. This dissertation constructs intermittent and continuous mathematical model to proves that government investment projects in the moderate introduction of private capital will increase Pareto efficiency of the project and enhance overall social welfare.Fifth, this dissertation has compared the government procurement, agent system, PPP, and in accordance with the classification of government investment projects, thinking different types of projects must chose different project management models. According to the current problems about agent system and PPP, combining related theories, this doctoral dissertation has suggested reform and improving measure for the local government investment project management model, including accelerating the legal system, reasonably determine behalf of the construction costs, the implementation of credit recording and publishing system, the implementation of accreditation system, establishing compensation and guarantee system, strengthening government supervision, standardizing project approval procedures, improving the price compensation mechanism, strengthening the training of specialized personnel, improving the legal system, reasonable definition of government functions, clearing procurement procedures and so on.To achieve the above research, this dissertation mainly used literature analysis, empirical analysis, comparative analysis get the following conclusions:First, clearly defined the functions of government in a market economy and to draw the line between projects, drawing on the results of previous scholars studies, divided the project into general competitive projects, key competitive projects, competitive infrastructure projects, non-competitive infrastructure projects, competitive public projects and pure public projects. Also pointed out that social capital invest primarily general competitive projects and competitive public projects, financial funds invest primarily in non-competitive projects and pure public projects, social capital invest primarily key competitive projects, appropriate investment and subsidies from governments, competitive infrastructure projects invested by government to attract social capital, also attract social capital.Second, through calculating macro efficiency of government investment, this dissertation found the efficiency of government investment increased first and then decreased. In 2005, the efficiency of government investment is the highest, namely 1. Then, the efficiency of government investment fluctuated downward trend, especially in 2008 and 2009, the efficiency of government investment is only 0.163 and 0.146. Despite recently the efficiency of government investment is slightly, but overall still at a low level. This dissertation, for a period of five years, estimated from 1996--2013 investment efficiency of different provinces, and found that in the same period there were significant differences in the efficiency of investment, and at the time point, part of the firstly attempt to introduce social capital, the efficiency of government investment is high. In order to prove the government investment project management model for the impact of government investment efficiency, the dissertation separately through the establishment of intermittent and continuous mathematical models, proved a government investment projects in the modest introduction of private capital, whichcan improve the Pareto efficiency of government investment projects.Third, through calculating micro efficiency of government investment, this dissertation found that the efficiencyof government investmen isdifferent t in different project management. The efficiency of government financing platform construction projectis was low, and BOT management mode was high. This dissertation analysised the reasons and found insufficient in the case cited in a variety of management modes.Fourth, through comparing with government procurement, agent system, and PPP, Combined with the reform of local government financing platform, this dissertation summarizes our current local government investment projects should adopt management. For non-operating projects, the government handed over by its sole franchise or other forms of local government financing platform construction, operation, maintenance, and local government financing platform in the construction management process management is flexibility to choose a variety of modes, including government procurement, agent system, BOT, PFI and other models. The financial sector in accordance with progress payments is directly paying to contractors, operators and other construction units, and local government financing platform is charging management fees in the project construction, operation and maintenance process management fees in accordance with the project contract. According to competition infrastructure projects and public projects the government and social capital can be used to participate in the model construction project management; local government financing platform can exist as a provisional takeover mechanism. When social capital project or project company violates the contract, and threats public goods and services continued stable and secure supply, or a threat to national security and vital public interests, the government commissioned a local government financing platform temporary takeover of the project until the project started early termination of the program; related government departments and institutions as project implementation units is implementig full supervision and management; the nature of the project implementation units can specify local government financing platform project company shares acoording to the scale.Through these studies, the paper made the following innovations:First, through establishing mathematical models, this dissertation has proved government investment projects in moderately introduction of social capital can improve Pareto efficiency and investment efficiency levels of of projects.Second, through a comparative analysis of specific cases, this dissertation has revealed the efficiency of government investment projects under different management patterns is different.Third, on the basis of distinguishing project type and management mode, this dissertation has further proved different type of projects should choose different type of project management.Despite arrive these achievements, this dissertation still exist insufficient, which is the future research direction. This dissertation has proved government investment project management model will affect the efficiency of government investment through mathematical model, and through three cases, analyzed the differences of the efficiency of government investment projects under different management modes. Due to limited data, there is no empirical analysis to test the mathematical model. If we can collect more government investment projects case, building the database of government investment projects, this dissertation will have empirical analysis of different project management efficiency of government investment under different project management model, in order to provide more substantial arguments from view of government investment management model.