Research Of Public Investment To China's Economic Development

Local government public investment is an important content of the public management function which the government implements all over the world and an important method of the implementation of macroeconomic regulation and control. Under the situation of rapid development of market economy in China and gradual government's withdrawing from the field of competition, the theory study of local government public investment and the way to reasonable use of it have become the major concern of the whole society. With three decade of reform and development, the reform of local government investment system lags far away behind the reform of the economic system. The deeper reason of it is related to many interests of the local government. If these problems could not be solved properly, the goal of comprehensive development of the society will face the long term influence. At present, the gap of the economic development between the regions is gradually being widened. The income gap between the professions is increasingly obvious. Gini coefficient of the whole society has entered the level of more than 0.49.The society must face several contradictions and uncertain possibilities of the development. The government should put the construction of the public investment in the level of strategic consideration and regulate the construction of public investment. In every stages of the development, the control of scale, structure and direction of the public investment are especially important. Therefore, This paper selects the scale and the structure of the local government public investment and the comparison of the local economy as the research topic to analyze the impact of it towards the economic efficiency comprehensively by the way of analyzing the effect of overall and part of the public investment towards the output, which is meaningful to understand the further public investment of the government.This paper writes by the methods of the empirical analysis, aggregate analysis and structural analysis with a large number of mathematical tool to analyze the problem exist in public investment and gives the policy recommendations. This paper discusses the optimal scale of public investment to the increase of the effects.Through static and dynamic model, the structure of public investment to the long term and short term effect of the economic growth have been studied. Then this paper use the method of DEA to analyze the investment efficiency of the public investment sector in recent years and point out the problems lay in the structure of the investment by the method of comparative study. At last ,this paper makes the regional comparative analysis on effect problems of local government public investment, establishes the East, Central and Western analysis of panel data models in accordance with the level of economic development and analyzes the promoting affect of local public investment to the economic growth in every region of China.