A Study On The Institutional Factors To Private Investment Growth In Gansu Province

Private investment is important propulsion of economic growth. Compared to public investment, private investment has characteristics: living mechanism, high efficient potentiality, the strong sustain-ability, conducive to business and innovation, strong effect of employment and increases the driving force of economic growth and vitality, private investment is the key to sustainable development. In recent years, with a series of supporting the promotion of private capital investment policy adopted by state and local, private investment growth momentum goes well, as has played a huge role for stimulating the national economy, consumption, investment and employment.Institution is a core element of economic development, as plays a decisive role in economic growth. Advance in private investment is closely related to implementation of macroeconomic government policy. Innovation of institution and fully mobilizing the enthusiasm of private investment, which has important strategic significance for the current reform of Chinese economy.With the continuous deepening reform of China and the effective implementation of policies about development of the western region, economic development has been more rapid in Gansu province. However, we should understand the economic growth in there is mainly relying on government investment, private investment is lagging behind the development. Compared to private investment in eastern provinces, we found that factors which lead to private investment is the pivotal reason that cause uneven development. Therefore, the in-depth analysis of the Institution constriction that affects development of private investment in this region is significant, which promotes private investment growth in Gansu Province and the whole economic health and sustainable development.promoting private investment in the development of Gansu Province is the main line, institutional factors as the starting point, from private investment and development scale, structure. using the Institutional Economics and Regional Economics, and the theoretical and empirical analysis, we found the fundamental reason that restricted the development of the private investment is combined effects of many factors. Refer to the Gansu Province, we give some advice about promoting private investment, regional economic and healthy development of policy recommendations.This article includes theoretical, empirical and Countermeasures three parts.Theoretical study includes the research results of the review and evaluation; Development of private investment in Gansu Province, problem analysis, investment and economic growth Mechanism.object of Empirical analysis is total economic output and private investment in Gansu Province, by using principal component and regression analysis, with the Cobb-Douglas production function, we analyzed factors in the institution under the action of Gansu economic gross and private investment and government investment. Drawn from the current view of the overall system environment constrained the development of private investment conclusions.Measures that based on the theory and empirical research. From the Gansu reality, We proposed policy support, the implementation of fair trade access mechanism, reforming the financial system, improving corporate governance structure, fostering entrepreneurship, promoting private investment in Gansu Province. Those Measures will promote sustainable economic, health, development in Gansu Province.