Game Analysis Of Public Infrastructure Investment Of Local Governments

At present, Chinese local government investment in public infrastructure has become one of endogenous economic growth variables, making great contributions to the promotion of economical and social development. In 2008, the global broke out international financial crisis, even hurt the entity economy, which led to the economic crisis. Including China, the world's major powers are in the shadow of economic crisis. for overcome the difficulties, the Chinese government put forward many plans by expanding domestic demand to boost China's economic, including putting in up to 4 trillion yuan of a basket of investment plans used to stimulate domestic demand. The majority of this 4 trillion yuan will invest in public infrastructure construction. However, just in the "Eve" of the governments preparing to start up a new round of investment, a serious subway accident happened in Hangzhou, causing grave casualties. This is tragedy reflected there are many problems in the local government investment in public infrastructure, such as superficial sight, chasing instant benefits, duplication of construction, bad quality and so on. These ills will bring potential breakage for the economical development of China. So, under the background of the expansion of domestic demand in China by focusing itself on investment in public infrastructure, the study of Chinese local government investment in public infrastructure is very necessary, with a profound and practical significance.Local government investment in public infrastructure is a very complex issue, involving the participation of many different stakeholders, it would certainly give rise to competition during the participants in the investment policy, capital and other interests. Seeing local governments as the core, in entire process of the local government investment in public infrastructure, there are following game behaviors between local governments and central government, local government and local government, local government and constructing side, local government and individuals. This article illumine from the collapse accident of Hangzhou subway, and use game analysis to make a perspective of Chinese local government investment in public infrastructure about the game behaviors during the multi-polarity of the various interest bodies. Through above analysis, the paper reveals the current problem existing in the local government investment in public infrastructure and makes some suggestion for strengthening the local government investment in public infrastructure combined with Chinese basic national conditions.