The Correlation Between Rural Public Investment And Rural Development

With high speed development of our country economy, the issue of rural economic slow-moving development presents gradually, more and more causing the concern of the officialdom and academic circles. Since 2004, the central key figures released three "NO.1"s document successively which indicates the government focus a lot attention on rural economic. There are many factors effect the development of the rural economic, but with the deepening of the study, the supply of the public goods become the focus of the issue. Under this background, this thesis studies the correlation between rural public investment and rural economic development. At present, the rural area needs a lot of investment while the public fund is limited, so it's necessary to find out which kind of public goods makes more contribution to the economic growth. According to the result, figure out a reasonable investment order, thus improving the investment efficiency.According to purpose mentioned above, this text divide the rural public goods into three kinds according to the rural public goods strategic impact on the growth of the economy, that's rural infrastructure, the agriculture research and the rural compulsory education. Making use of the C-D model, building up the model about the public investment and rural economic growth, then gradually lead the rural infrastructure, the agriculture research and the village compulsory education into model. Using the Chinese rural public investment data from 1990 to 2006, compute these three types of public goods'influence degree to the economic growth of the rural.This thesis includes five chapters, at the introduction part, mainly introducing the research background and research method, clarifying research object and target subsequently, finally explaining the textual innovation point. In chapter 2, on the basis of elaborating the concept of rural public goods, rural public investment and rural economic growth, introduce the theory of the rural public investment and economic growth. According to the concept and theories mentioned above, divide the rural public goods into different kinds by different classification standard and definite the public goods scope of the rural. Start from chapter 3, the thesis first carry on describe analysis, concretely analyzing the structure among the total rural public investment, the public finance expenditure and the rural GDP public, thus seeing through the present public goods'supply condition of the rural area. On the basis of the analysis above, the thesis emphasized to analyze the investment present condition of the rural infrastructure, the agriculture research and the rural compulsory education, and then carried on a brief evaluation to the present supply conditions of those public goods. In chapter 4, analyze separately the correlation between each kind of rural public goods product and the rural economic growth. Making use of the C-D model, building up the model about the public investment and rural economic growth, then lead the rural infrastructure, the agriculture research and the village compulsory education into model one by one, thus finding out those three types of public goods'influence on the economic growth of the rural area. At the chapter 5 of the thesis is the conclusion and suggest part, which gave out some suggestion on the foundation of charter before.The innovation of this paper lies in making the study of rural economic growth with the supply of rural public goods which are formerly regarded as exogenous and difficult to quantify, quantifying all kinds of rural public goods, and making agricultural research investment and education investment into this model, thus finding out the influence of supply of rural public goods to rural economic growth. Finally, the paper figures out the rural public goods invest order according to the result counted by the model which may be useful to make the advisable suggestion for improving the investment efficiency.