Research On The Influence Of Public Investment On The High-Quality Economic Development In China

In recent years,the world economic structure has undergone profound changes,and China’s economic development is faced with constant fluctuations in external demand.Promoting domestic demand has become an important guarantee for driving the economy.In order to keep the economy operating within a reasonable range,China has introduced the "six stability" policy,in which "stable investment" is a key link to maintain stable economic development.In 2020,the COVID-19 epidemic has brought a significant impact on China’s economy.In the first quarter,China’s GDP growth decreased by 6.8% year on year,which is in sharp contrast to the high growth rate of9.4% on average in the past 40 years.It is the first negative economic growth phenomenon in China since the reform and opening up.While consumption and exports fell sharply,investment also fell 16.1 per cent in the first quarter from a year earlier,putting considerable downward pressure on the economy.It is necessary to boost investment to stimulate economic growth.As an effective means of macro-control,public investment is a powerful force to maintain infrastructure construction,ensure people’s livelihood and create jobs during the economic recession,which to a large extent promotes the stabilization and rebound of China’s economy,and the economic aggregate will exceed 100 trillion yuan by 2020.Different from the "4 trillion yuan plan" implemented by China in 2008 to stimulate the economy,China did not suddenly increase the scale of investment in response to the economic downturn caused by the COVID-19.Instead,China insisted on increasing effective investment and tried to avoid negative problems such as overcapacity,resource waste and inflation caused by the blind increase in investment.In the stage of rapid economic development in China,public funds have provided strong support for economic construction,the continuous improvement of infrastructure level has provided a solid foundation for China’s economic take-off,and the increasing perfection of public service system has also contributed to the protection of people’s livelihood and the realization of social development.Trillions of dollars of public investment are playing an important role in infrastructure and public services.They are not only necessary for economic production and people’s lives,but also will foster new drivers for high-quality economic development.Therefore,in the critical period of China’s economic transformation,it is of great significance to study the impact of public investment on high-quality economic development and promote the quality and efficiency of public investment in order to achieve the goal of "stable investment and development" and to promote high-quality economic development.China’s economic development is the concept of high quality in the external environment and internal conditions of national economy development under the background of profound changes,marked the target of China’s economic development has been a shift from the pursuit of economic aggregate ascension emphasizes the quality of economic development,not only depend on increasing inputs to achieve economic growth,but more emphasis on scientific and technological progress and innovation drive,structure optimization,and the harmonious development of society and economy,etc.Under the guidance of the new development concept of "innovation,coordination,green,openness and sharing",it is a question worth studying whether public investment can promote high-quality economic development.Therefore,this paper focuses on three core issues: first,whether public investment has an impact on high-quality economic development;Second,the mechanism through which different types of public investment act on high-quality economic development;Third,how to improve the quality of public investment so as to better play the positive role of public investment in high-quality economic development.This paper summarizes the research results about public investment and economic development at home and abroad,and summarizes the main views that public investment affects economic growth,economic quality and high-quality economic development.Although the research history of public investment and economic development is relatively long,due to the different national conditions of different countries,affected by economic system,social environment and political factors,the application scope and functional positioning of public investment in different countries are different,and there is no consensus on the impact of public investment on highquality economic development.On the basis of clearly defining the basic concepts and extension knowledge of China’s public investment and high quality economic development,this paper clarifies the theoretical basis of the research content by combining several classical economic models.Public investment is divided into productive public investment and social public investment according to the different nature of investment.There are three main functional mechanisms of public investment for high-quality economic development.First,productive public investment can effectively increase the factor input in economic production,directly affect the accumulation of physical capital,promote economic growth,and lay a foundation for high-quality economic development.Secondly,both productive public investment and social public investment can affect the accumulation of human capital.Among them,investment in social fields such as education,medical treatment and culture can directly improve the level of human capital.Productive public investment can provide a good external environment for knowledge accumulation and technological progress.Third,both productive public investment and social public investment have positive externalities.Different from private investment,the goal of public investment is not to pursue profit maximization,but to meet the needs of the public.It can play a role in improving economic efficiency,adjusting economic structure and other aspects,thus exerting an impact on high-quality economic development.Based on the new development concept,this paper calculates the economic high quality development index by using the entropy method,and gives a brief evaluation of the current high quality development level of China’s economy.On the analysis of the current situation of the high quality of public investment and economic development,on the basis of chart analysis method was used to study the effects of public investment on high quality and economic development,found that public investment in high quality and economic development the influence of different dimensions vary,but the overall public investment for economic development have a positive impact,high quality,the reasons for this phenomenon may be public investment for high quality and economic development does not give full play to the role.In order to verify the impact of public investment on high-quality economic development,this paper selects panel data of 30 Chinese provinces(municipalities and autonomous regions)from 2009 to 2018 for econometric analysis.The test results of systematic GMM estimation show that,on the whole,the stock of public investment has a positive impact on high-quality economic development,but the impact of different types of public investment on high-quality economic development is different.Social public investment and public investment in productive for high quality and economic development direction is not the same,the influence of social public investment in high quality and economic development has significant positive influence,and influence on the development of the productive public investment on economic quality is negative,and their high quality and economic development index between the inverted u-shaped relationship.Finally,based on the conclusions of qualitative and quantitative research,this paper proposes countermeasures and suggestions for optimizing public investment to promote highquality economic development from several aspects,such as clearly defining the scope of public investment,improving the government’s management ability and supporting strength,in view of some deficiencies in the field of public investment at present.