Research On The Economic Effect And Action Path Of The Government Investment Fund

China's economy is in critical period of development mode transformation,economic structure optimization,growth momentum transformation,the economic restructuring and upgrading in the new era also put forward a new demand for investment.With the optimization and upgrade of China's traditional industries along with the rapid development of emerging industries,such as Internet,data cloud,artificial intelligence,etc.,equity investment fund plays an increasingly prominent role in the investment field.Governments at different levels also actively explore and seek innovation,by setting up the government investment funds,leveraging social funds,expanding the leveraging effect of fiscal funds,and investing in the key and weak fields of the economy.With the establishment of a series of national funds and the release of favorable policies,China's government investment fund is also on a blowout trend.According to the database of PE connection,at the end of 2016,China had 2086 the government investment funds with a total size of 7.5409 trillion yuan.However,the government investment fund grows so fast in number and scale,what are the effects in guiding social funds? And what are the effects in promoting economic growth and optimizing industrial structure? These core issues are not only directly related to the policy design and implementation path of China's the government investment funds,but also directly affect the theoretical research of fiscal policy and the exploration and development of the relationship between government and market.The paper follows the logical development of asking problems,analyzing problems and solving problems.Starting with the core objectives of the government investment funds,focusing on the main theme of the funds' economic effects,based on a systematic review of domestic and foreign research results,it focuses on the analysis of China's government investment funds' guidance effect,economic growth effect,industrial structural optimization effect,as well as taking the funds' action path as a foothold,comprehensively summing up the related problems in the funds' economic effects and their action paths,combining with foreign experiences and lessons,discussing the policy recommendations for improving the economic effects of China's government investment funds.The paper is divided into the following 9 chapters.Chapter 1 is the introduction.First of all,from the development background of the government investment funds,stating the paper's research topics as well as research meanings,and defining the relevant concepts.Afterwards,sorting out the papers of the government investment fund operation and management,the social capital influence and the fund economic effect,analyzing the frontier results for the issues.Finally,drawing out the research method,the research content and the research logic,summarizing the main innovations and deficiencies.Chapter 2 is the theoretical basis of the paper.In the first place,combining with the government intervention theory,the resources allocation theory,the financial intermediary theory and the principal-agent theory,the theoretical basis in the aspects of the fund establishment,the fund function and the fund operation management is analyzed.Furthermore,the core objectives of the government investment funds are defined and the functions and the characteristics of the funds are discussed.Finally,the theoretical analysis of the government investment funds to guide social capital,promote economic growth and optimize industrial structure is carried out,and the role of the government investment funds is clearly defined to lay out the theoretical foundation of the paper.Chapter 3 is the development situation of China's government investment funds.First of all,from the developing process of the government investment fund,comprehensively reviewing and summarizing the historical stages of the fund development.Meanwhile,from the fiscal of view,through the analysis of fiscal policy evolution,elaborating the government investment fund's policy origin and the fiscal policy logic in behind.Through the historical and policy double angle of view,forming the comprehensive investigated understanding of the government investment fund development history.Further to that,from the two angles of the management system and fund development to analyze the present situation of the government investment fund,presenting the development status of China's government investment fund.Finally,an exploratory analysis of risks faced by the funds is made from three aspects,the risk transfer,the risk addition and the risk derivation.Chapter 4 is the evaluation and the analysis of the guiding effect of China's government investment funds.Based on the theoretical analysis of the guiding effect of the government investment funds above,through data analysis and the establishment of a random effect model as well as a simultaneous equation model,the action relations of the fiscal funds in guiding social capitals,the guiding funds in guiding social capitals,the government investment funds and the market-based equity investment funds are respectively empirically tested,and the situations and the problems of the guiding effect of China's government investment funds are summarized.Chapter 5 is the evaluation and the analysis of the economic growing effect of China's government investment funds.The chapter builds up a quantitative analysis model of the government investment funds to promote economic growth,comprehensively explores the significant level,the effect difference and the changing trend of the funds' economic growing effect from the three dimensions of the time,the region and the fund type,and conducts a comparatively comprehensive test of robustness to ensure the stability and the effectiveness of the empirical analysis results.Chapter 6 is the evaluation and the analysis of the industrial structural optimization effect of China's government investment funds.The chapter builds up a quantitative analysis model for optimizing the industrial structure of the government investment funds,comprehensively explores the significant level,the effect difference,and the trend of the industrial structural optimization effect from the three dimensions of the time,the region,and the fund type,and conducts a more comprehensive test of robustness to ensure the stability and the effectiveness of the empirical analysis results.Chapter 7 is the analysis of the action paths and the problems of the economic effects of China's government investment funds.First of all,combining the theoretical analysis of the action paths of the government investment funds,the chapter establishes a structural equation model to empirically test the action paths.Then,combining the empirical results,it analyzes the characteristics of the action paths of China's government investment funds,and summarizes the various problems that exist in the economic effects and the action paths.Finally,it explores and analyzes the deep-seated causes of the problems from both the objective and the subjective aspects.Chapter 8 is the experience summary of the foreign government investment funds.Systematically sorting out the basic and operational situations of the government investment funds in the U.S.,the E.U.and Canada,then refining and summing up the meaningful experiences and lessons.Chapter 9 is the research conclusion and the optimization proposal.Revolving around the above research findings,problems and analysis of reasons,the chapter explores policy recommendations for improving the economic effects of the funds from five aspects,the fund establishment,the fund fundraising,the fund management,the fund investment and the risk management.The main conclusions of the paper can be summarized as follows:1.The guiding effect of China's government investment funds is significant,but there are several problems and deficiencies.(1)The fiscal funds' guiding effect on the social funds is significant,the leverage ratio is between 1.02-2.33,a relatively low level;(2)Although not ideal,the government guiding funds does have the guiding effect,based on the guiding effect level from high to low,the government growing funds,the government venture capital funds and the government merger and acquisition funds;(3)The government guiding funds in the developed regions focus more on the venture capital;in the contrast,the funds in the under-developed regions focus more on the growth along with the merger and acquisition;(4)Between the government investment funds and the market-oriented equity investment funds,the driving effect and the crowding-out effect coexist.2.The economic growing effect of China's government investment funds is significant and shows a certain regularity.(1)The government investment funds promote economic growth at the national level,and their effect level shows a regular trend of rising first and then decreasing.The effect peak usually occurs in the 3rd year after the fund establishment;(2)The funds in the Mid-west region have a higher level of the economic growing effect than that of the East region,but they lag behind those in the East region by 1-2 years;(3)The action period of economic growth of the government venture capital funds,the government growing funds and the government merger and acquisition funds varies.3.China's government investment funds have an industrial structural optimization effect at the national level,but there are significant lags and regional differences.(1)China's government investment funds have a significant industrial structural optimization effect at the national level,but their effects must be reflected in the 4th or 5th year after the funds' establishment,with obvious lags;(2)The funds in the East region have a better industrial structural optimization effect than those in the Mid-west region.Specifically,1)The funds promoted the upgrading of the industrial structural rationalization in the East region,but the effect level in the Mid-west region was not significant.2)The funds' effect on the development of the tertiary industry in the East region is higher than that in the Mid-west region.3)The Funds have a negative impact on the economic services level in the Mid-west region;(3)Only the government growing funds have a catalytic effect on the industrial structural rationalization,and the 3 types of funds have a certain lag on the industrial structural advancement.The government merger and acquisition funds have the highest effect level on the industrial structural advancement.4.The action path of China's government investment funds is basically smooth,but there are path constraints.(1)There are path constraints in the economic effects of China's government investment funds,and the funds' corporate development effect and economic factor development effect would need to be improved;(2)The core of the funds' economic effects lies in the release of the corporate development effect,which is the dense area of the fund management system construction.(3)There are several problems in the economic effects and the action paths of China's government investment funds,and they would need to be resolved through the effective systematical supply.Based on the analysis of China's practical and international experiences,the paper points out the main policy recommendations as follows:The first is to deepen the structural reform of the supply-side as the main line and wholly plan the funds' establishment.Supporting the transformation and the upgrading of the traditional industries and promoting the rapid development of the emerging industries.Optimizing the funds' existing resources allocation,expanding the high-quality incremental supply and achieving a dynamic balance between the supply and demand.Strengthening the support for the scientific and technological SMEs along with the innovative entrepreneurship and focusing on the promotion of the scientific and technological achievements' transformation.Developing the funds based on the region,the time and the needs,avoiding the crowding-out effect on the market-based funds.The second is to take the policy mechanism as a breakthrough,comprehensively raising the funds' financing ability.Strengthening the funds' supporting policies,optimizing the cooperative parties' income distribution mechanism,rationally relaxing the funds' regional protectionism restriction,arousing the social funds' activity.The third is to enhance the enterprises development effect as the core,strengthening the fund management system construction.Drawing a reasonable boundary between the government and the market,establishing a fund managerial and organizational mode combined the centralization and the decentralization,strengthening the system construction of the Funds and the related managers,founding a comprehensive and scientific fund performance management system.The fourth is,through the fund investment,to drive the resources flows,facilitating the coordinated development of the different regions.Rationally increasing the Funds' support to the Mid-west and the specific areas,by coordinating the funds with the policies,strengthening the regional coordinating development mechanism,attracting talents by the fund resources,guiding the talents in the market to flow into the Mid-west.The fifth is to strengthen the construction of the risk control system,support the enterprise development in an all-round manner,control the transfer risk,standardize the funds' operation and management,enhance the corporate governance and reduce the new risks;strengthen the funds' budget constraints,prohibit the “bonds in the name of stocks” phenomenon and strictly prevent the derivative risks.