A Study On The Effects And Transformation Of Government Investment Policy In China

Government investment is an important means for Chinese government to realize its functions of economic development, public service and macroeconomic regulation. Policies of government investment include both role orientation and practical operation. Generally speaking, policies of government investment are the embodiment of various factors in the field of investment, for instance development period, economic system, development strategy, and etc. Since the foundation of china, policies of government investment have been evolving according to specific development strategy. And those policies have great impacts on the implementation of the strategy, economic growth, as well as economic structure adjustment. However, the overall effect is not so significant. The effectiveness of policy changes in various periods depends on economic system, selection of development strategy and policies of government investment. In view of experiences of past time, this dissertation aims to discuss the way of adjust investment policies and how to make it helpful to the realization of China's development strategy.According to China's modern history, there are three stages of economic development since 1949, including the planned economy period(1949-1978), the transformation period from planned economy to a market economy(1979-1997), and the market economy period(1998-). With empirical analysis, this dissertation analyzes the changing courses and impacts of government investment policies on economic and social development in each stage. there After, the author suggests the possible direction and strategy for the adjustment of government investment policies.This dissertation mainly includes three parts.Firstly, it discusses the path for the adjustment of government investment policies. With a glimpse of the formation and change of government investment policies during three stages, this dissertation brings forward the direction and method for policy change, as well as analyzing the characteristics, advantages and disadvantages of adjustment of government investment policies. After analysis, it affirms the achievements of government investment policies since 1949, but also points out the great gap between current government investment policies and the optimal one. Therefore, there exists a necessity of further improvement in government investment policies.Secondly, it concentrates on the impacts of government investment policies change on economic growth and structure, which covers the impact of government investment on economic growth and fluctuation, regional economic distribution and rural infrastructure construction. The result shows that government investment in China has an important effect on economic growth and fluctuation; Government investment plays a very important role in balanced regional development; Lack of government investment in rural area is the main cause of low level infrastructure construction; Means and effects of government investment on industrial structure change is varying over time. As a result, it is urgent for the government to improve government investment strategy so as to perfect socialist market economy and construct a reasonable public finance system.Lastly, it puts forward strategic blueprint of government investment policies change. And it is suggested that the framework and target for policy change of government investment should accord with the"Scientific Development Notion"and"Harmonious Society Construction".There are four aspects of innovations in this dissertation. Firstly, it suggests the innovative concept of the Triple Government Investment, which helps to solve the problem of statistics and macro control deviation. This provides a new path for the government to stipulate policies and transform its function in market economy. Secondly, it puts forward the new target of transforming government investment from"Economic Development"to"Public Service", which takes into account the reality in development strategy selection and role change of government. This is extremely meaningful to the future transformation of government investment. Thirdly, this dissertation puts forward the concept of"Three Changes"for government investment. In this way, it clarifies the concrete and feasible measures for government investment to convert into"Public Service Type". At last, this dissertation suggests utilizing triple government investment to develop economy. Therefore, it properly defines the function of government investment. Right now, it is probable to harmonize the two functions of government investment, namely public service and economic development.