Analysis The Economic Effect Of Infrastructure Investment

Infrastructure is the physical condition of social product and people's living, which is one country's basic of surviving and development. From 1954 to 2008, the nation's basic infrastructure investment totaled 36.5304 trillion Yuan, an average annual increase rate 13.7%,over the same period an average economic growth rate 2.4 percentage points higher. So Infrastructure investment can be seen in the importance of China's economic development. This paper aiming at Chinese infrastructure investment target, using a combination of normative and empirical research methods, on the basis of the size and structure of China's infrastructure investment, focuses on a systematic study of Chinese infrastructure investment in economic effects.1. This paper conducts an analysis on the economy growth effect of Infrastructure investment. This paper studies China's 1978-2008 of investment in infrastructure, using econometric error correction model, and empirically analyses of China's three decades of infrastructure investment and economic growth relationship. Study shows that infrastructure investment makes economic growth with long-term and short-term stimulating effect of the economy, and the former should be smaller than the latter.2. This paper analyzes the space spillover effect of infrastructure investment. Infrastructure own space network characteristics is on the base of studying the space spillover effect of infrastructure investment. The space spillover effect of infrastructure investment is divided into two aspects:on the one hand, infrastructure investment through economic spillover effects, promoting factors of production, personnel flow, has a positive space spillover effect; on the other hand, investment in infrastructure by means of agglomeration economies effect, making the regional economic development unbalanced and resulting in economic differentiation, has a negative space spillover effects. In the empirical analysis, this paper takes the example for across our three regions of the Hu Kun railway and explains the space spillover effect of infrastructure investment.3.This paper studies the employment effect of infrastructure investment. The employment effects of investment size has closely related to the investment structure. The Capital-intensive of investment structure reduced the. relative size of employment, the employment effect of investment declines; the labor-intensive of investment structure expands size of employment, the employment effect of investment increases. Investment infrastructure is capital-intensive investment structure; therefore investment infrastructure has a job crowding-out effect. In this paper, empirical analysis of China's employment elasticity and employment elasticity of infrastructure investment, it suggests that the employment elasticity of infrastructure investment has a downward trend, infrastructure investment has a crowding-out effect of employment.Based on the theoretical and empirical analysis, this paper also puts forward policy proposals to increase infrastructure investment, improve the scope of infrastructure investment, make infrastructure systematic in backward areas, optimize investment structure, and so on.