Empirical Research On The Efficiency Of Government Investment In China

Government investment is an important mean of making up the market defects, reflecting the government function,improving the people's living standards,realizing the government macro-control.At the same time,in certain sense,the government investment direction even reflects the selection of the function orientation of government and the realization of the national development strategy.At present,China is in the circumstance that the market economy system is improving and the international economic is changeable,the government investment has been rewarded much attention by policymakers,and the government investment related problems also have been noticed by the theoretical circles and social.The start of 2008 global financial turmoil forced our economy suffered a great blow,so in December 2008,our government put forward four trillion yuan of government plans to invest through strengthening the infrastructure construction,such as the railways,highways and electric power facilities,than "moving" private investment and expanding domestic demand,thus to face the serious economic crisis.People cannot help asking how much such huge capital investment can pull China's economic development,whether can achieve the expected goal? So this is involved the efficiency of government investment.Actuality,research literature about the government investment mostly form theory qualitative analysis,empirical researches about the government investment almost in abroad,but in China,researches of the government investment,especially the empirical studies of the efficiency of government investment are relatively few. This paper's spindle is the empirical researches to the efficiency of Chinese government investment,firstly analyzes the necessary connotation of government investment and the efficiency of government investment,then uses the Production Function method for researching the output efficiency of government investment,the Data Envelope Analysis method for researching the structure efficiency of government investment,and The Stochastic Frontier Analysis method for researching scale efficiency of government investment,the conclusion of this paper is that the overall efficiency of government investment is not high,the structure is not reasonable,and the scale of government investment is not efficiency,finally puts forward the practical significance strategies for our government investment problems form the "Government Failure Theory".