Studies On Economic Effect Of Government-led Investment Behavior

In the 1980 s,the transition from planned economy to market economy gradually in our country has gone through more than 30 years of history,but the government has become the main participants of the market and the investment subject,which impact on the economy now is becoming bigger than before.During the global financial crisis period on 2008,Chinese government putting forward the “4 trillion” stimulus investment plans,local governments of various investment plans were introduced,through fiscal appropriation and bank credit funds,investment in fixed assets as an important means of the government macroeconomic regulation and control,playing an important role in against financial risks and stabilizing the economy of our country.However,in the conditions of China's financial system is not sound and investment system is not perfect,there is some structural problems in economic operation,forming the obstacle to sustainable development of economy in our country.The role cannot be ignored which investment as a key factor in the economic development of our country and government as important investment main body of our country.Therefore,this paper in-depth empirical level exploring the economic effects of government-led investment behavior under this background,explicating what role the government should play in resource allocation is of great significance to promoting the stable growth of economy in our country.The discoveries of this article are mainly:(1)The government investment for economic growth has boosting effect,but the effects are limited.Government investment of government-led investment behavior led to the active economic system and improvement of economic development,but impact strength is limited.Government investment expansion has played a positive role to economic growth,but the pulling effect being short and inefficient.Economic growth,do not have long-term equilibrium relationship with government investment.The action of government investment is more suitable for the emergency measures and short-term effects.The high investment and low growth model is not an optimal and unsustainable patterns.(2)Government investment spending has inhibiting effect on residents' consumption.Government investment behavior into the field of competition and loss of market resources,crowding out the enter space of private capital,reduced the activity of the consumer market,result in inverse changes of government investment and consumer spending.There is long-term stable equilibrium relationship between government investment,household consumption,government consumption expenditure,government expenditures and degree of financial development.This inhibiting effect can be reflected after a certain time of delay.Because government investment projects have the characteristics of the long cycle,slow response,the impact on the residents' consumption needs a much longer time to reflect.(3)The growth of the government investment will lead to raise the level of investment in fixed assets of domestic loans.The relationship between them is a one-way leading,does not have the relationship of mutual feedback.As the growth of the time,impact of government investment and inflation on levels of fixed assets of domestic loans is more and more apparent.In addition to its own influence,the effects of the government investment are the largest changes cause of domestic loans in fixed asset investment.(4)Government investment spending will impact on private investment,and have a significant negative relationship in general.Government investment will squeeze out private investment,resulting in a drop in private investment.In macroeconomic volatility period,a proactive fiscal policy and loose monetary policy made by Chinese government have obviously pull function on the private investment.By raising the level of economic development,private investment became active,followed being squeezed by the more credit advantage of government under the loose monetary policy,the government investment to private investment in both pulling function and extrusion effect,but long-term performance for the extrusion effect.Under the sound fiscal policy and monetary policy,the government investment to private investment maintained steady state after a pushing effect.(5)The government's investment spending has significant widening effect of residents' income gap between urban and rural.The funds and policy support and development opportunities of the unequal monopoly profits being brought by government's investment spending led to a widening income gap between urban and rural areas,widened income gap between urban and rural.Through cointegration analysis to vector autoregressive model of the government investment,fixed assets investment gap between urban and rural,the income gap between urban and rural residents proved that there is long-term equilibrium relationship between the above three.The government investment will cause the expansion of the residents' income gap between urban and rural areas,fixed assets investment gap between urban and rural.(6)Whether the government control will affect enterprise's investment opportunities.under the decentralized reform of financial system,the performance of highest level of state and the lowest level of county government is not significantly,but involvement and participation of provincial,city level government in the enterprise management,can improve the investment opportunities obviously,particularly in the situation of institutional environment's poor,backward market development.As the more perfect of market development,the ability of resource advantage more cannot get to play by the executive power of local government and provincial.The intervention of municipal government can also lead to uneven in opportunities and resources when this action has played a positive role at same time.(7)In the case of excessive investment,Private enterprise executives has political relations would have a negative correlation on enterprise investment performance.The reason is that the board executives' political relations as a special means will affect the allocation of resources and the production and operation of the enterprise.Governments' intervention from top to bottom will continue to provide more financial support and convenience for the private enterprise,making the enterprise no timely adjust the investment decision-making under the condition of excess investment,causes the enterprise investment's low performance.However,in the case of moderate investment,enterprise executives have political relations will promote enterprise operation and improve the investment performance of enterprises.