The Study On Innovations In Financing System Of Urban Infrastructure Construction

The sustainable development of urban infrastructure construction is one of preconditions required for a country's economic growth in that sufficient supply of urban infrastructure is able to improve production, create employment and stimulate consumption by increasing residents' income. Since China's reform and opening started in the end of the 1970s, China has gained great process in urban infrastructure construction. However, with regard to some factors like huge historical debts, a high proportion of projects with huge investments and long cycles, low operation effect and so on, many cities in China are still bothered by the lagged urban infrastructure construction compared with their quick economic and social development. Thinking further, the essential cause is the financing system of urban infrastructure construction is defective. Taking the city Hangzhou as an example, although great process has been made during these years, fund demand of urban infrastructure construction cannot be met by relatively scarce fiscal funds. Therefore, how to fund urban infrastructure construction in Chinese cities is a realistic problem urgently to be solved.This paper is aimed to discuss effective innovations in China's urban infrastructure construction through analyzing financing systems for non-operating and semi-operating urban infrastructure construction projects in Hangzhou during the current eleventh Five-year Plan. Firstly, we begin the research from the reality, making a clear understanding about the real conditions and existent problems in Hangzhou's urban infrastructure construction. Then we systematically review relevant theories in this field and also refine some successful experience from developed countries like Japan, Germany, France and the United States as well as some domestic cities such as Shanghai. Based on empirical and theoretical analyses, we study supply and demand of funds for urban infrastructure construction in Hangzhou and then give our suggestions about feasible innovations to solve fund shortage.