Study Of Local Government Investment And Regional Economical Growth

Investment is an essential element, an important source and the main driving force of economic development. The government investment policy in china has become a major tool for macroeconomic control. Local governments as the investors of regional state-owned assets, invest to the various departments and the various industries through the financial channels, widely and deeply impact on our economic activities,and bring huge influence on the investment system, regional industrial structure and other investors. The government’s special status in the economic society makes its investment behavior to have strong administrative features. Meanwhile, the local government investment behaviors have a very important influence on the regional economic growth. How to regulate local government investment behaviors through a more appropriate way to achieve the positive impacts on the regional industrial structure and the other investors, and promote the regional economic development, are the urgent problems to be resolved. Therefore, studying the relationship between the local government investment and the local economic growth has the great significance.This dissertation is divided into eight chapters. The first part is introduction, mainly introduces the background and significance of this study, the purpose of research, the study structure arrangements. The paper integratedly uses of multi-disciplinary knowledge and methodological basses of materialist dialectics in macro and micro economics, public economics, normative analysis and empirical analysis, the overall analysis and case analysis, scale analysis and structural analysis, and vertical horizontal comparison analysis methods, and collects in Sichuan province from1985to2011variable time-series data for econometric analysis.Chapter Ⅱ is about relevant domestic and foreign literature review mainly includes:government investment, local government investment, economic growth, local government investment and regional economic growth. The dissertation analyzes the local government investment from relations between the central government and local government, the causes of local government investment impulse and short-term investment behavior, the reform of government investment, the relation between investment and industrial structure of local government, the relation between government investment and private investment. Also, the theory of economic growth is reviewed at the view of classical economic growth theory, neo-classical economic growth theory and endogenous economic growth theory.Chapter Ⅲ, Ⅳ, ⅡⅤ and Ⅵ research the hot issues inextricably linked with regional economic development which are existing in the local government investment,such as the relationship between the local government investment and industrial structure, the local government investment system’s reform, the relationship between local government investment and private investment.Chapter III describes purposes, functions, sources of funds, investment scope, and problems of government investment, local government investment and the investment behavior of local government during the transition period. Chapter IV discusses the relationship of the local government investment and the evolution of industrial structure, and takes Sichuan province as the case to make an empirical research on the basic principles of industrial restructuring and promoting the adjustment of industrial structure for government investment. Chapter IIV studies the relationship between the investment system and economic system and financial system, the evolution of China’s investment system, the current problem of the local government investment system, and the progress of the Sichuan provincial government investment reform. Chapter VI studies on the development process of China’s government investment and private investment, relevant policies of encourage and guide on private investment, comparison between the government investment and private investment, the current difficulties faced by private investment in China, and makes empirical analysis on relevant statistical data in Sichuan province.Chapter VII rearches the problems of the way of action and the relationship between the local government investment and local economic growth and the local government investment and financing platform, as well as makes Sichuan province as the example,analysises the investment focus of the Sichuan Provincial Government, and describes influence of macroeconomic policies on the Sichuan provincial government investment in the context of the the Western Development, the centurial government’s4trillion investment plan and the post-earthquake reconstruction. Also it elaborates the plan and priorities of Sichuan provincial investment in China’s Western Development and Chengdu-Chongqing Economic Zone, the status and role of Sichuan provincial government investment and financing platform’s building. Finally, the dissertation selects the relevant variables, using the statistical data of Sichuan province, to model the relationship between the local government investment and regional economic growth to do empirical analysis, and gets conclusions:in the short term, government investment can give a strong role in boosting economic growth, especially in the economic downturn; in the long term, we must strive to guide private capital into the industrial area of investment, government investment in the future gradually exit from the field of general competition, return to the other investment entities to create the basic conditions and a good environment for fair competition.Chapter VIII is based on previous studies puts forward respectively some policy suggestions on specifing and guiding the investment behavior of local governments, establishing and improving a sound local government investment system, adjusting and optimizing industrial structure through local government investment, accelerating the promotion of private investment, and building local government investment and financing platform.The innovative points of the dissertation are the following aspects:Firstly, it researches the influences of the specific backgrounds just like the Western development,the central government’s4trillion investment plan and the post-earthquake reconstruction to Sichuan provincial government investment.Secondly,the relationship between local government investment and private investment has been made an empirical analysis, and thinks that private investment is the main driving force for regional economic development in the future, we should vigorously develop the private investment. Thirdly, through analysis of macro-econometric and empirical models, it thinks that investment plays an important role in promoting economy development, and this effect in the final will be transformed into the human resources and technical progress and other factors to positive impact on economic, leading to endogenous growth of the economy ultimately. The inadequacies of this dissertation are:Firstly, because the local government investment is not completely out of the competitive field of investment and is in a wider range, thus it is not very full discussion of this dissertation for the local government investment industries. Secondly, because Sichuan province is located in China’s west, it is of particularity in the economic development status and national supportive policies, there is one-sided to a certain extent that the paper selects it as an instance of the local government investment. Thirdly, this paper makes research on direction of development economics, because it’s particularly strong on innovation and effectiveness, this study remains to be further improved based on cutting-edge theory of the related disciplines.