Study On Marketization Theory Of Investment & Financing In Public Infrastructure

Building capital of Public Infrastructure (PI) is shortage in China. Though China government have issued the Long-term construction national debt since 1998,there is still vast breach of construction capital in PI.How to reform investment and financing system of public infrastructure, innovate new financing canal, attract private investment to infrastructure, and speed market proceeding of PI, have been being paid close attention to in business circle recently. Owing to many factors, the researches of PI are complex. Though a lot of achievements have been obtained, many problems remain unsolved. On the basis of investment and financing theory at home and abroad, this paper does regression analysis between PI and GDP in China. And it introduces the general financing mode in the world. By the means of game theory, paper establishes the complete information static stage game module between government and private investor, and analyses the problem in game. Later this paper brings forward two opinions to respite the capital shortage in PI: build Municipal Bond market in China; BOT (build-operate-transfer) mode in country and private possession. The main works and conclusions in this paper are as follows:(1)There is substantial positive correlation between investment in PI and GDP in China. So is the growth of GDP and the growth of investment in PI.In order to keep GDP growth, China should ensure the force of investment in PI. (2)Establish the complete information static stage game module between government and private investor. The conclusion is: When the investment of government is deficiency, private investors have the ability and desire to make up of the gap of investment in PI.(3)Owing to the restriction in private investment, private investor is at silence in PI investment. It is the main reason that the enlargement of National Debt's issuing scale doesn't bring the growth of private investment in PI in China. To resolve this problem, this paper puts forward two solutions as follows:(a)To build Municipal Bond market in China, and attract private investors to PI by this means;(b)Incountry and privatize BOT financing mode.