Research On Government Investment Structure Of Liaoning Province In The Context Of Fiscal Decentralization

Investment have different influences on ecnomics. Reasonable investment structure will not only courage economic growth. but also help to remain social stability. On the opporsite side, unreasonable investment structure will discourage the development of economics. The high rate of GDP' expansion has taken good advantage of investment's growth. In all kinds of investment. government investment.especially local government inestment has play a great role in promoting ecnomic development. However, there are also some issues in tne structure of local government investment which can not be ignored.The two financial system reforms, especially the second one. had significant impacts on investment activities. The reform of financial system is viewed as a division of powers between central government and local government. Before the revenue-sharing, local government had a limit decision of power on investment. Because of adequate financial, local government has more powers to decide what fields to invest on. There are sorts of changes in local government's investment structures.In the context of fiscal decentralization, it is very necessary to study the local government's investment structure and find out the issues in it. So this paper will pay more attention to LiaoNing Province to find out the problems and corret them. This is not only theoretical significance of improving financial system and optimizing the structure of government investment.as well as practical meanings of promting healthy economic development and building a harmonious society.This paper is divided into five parts.The first part is set to introduce the significance and background of this topic and research status, as well as main content. Meanwhile, there are innovation and shortcomings in this part.The second part will not only show the history of China's fiscal decentralization, but also introduce certain conceptions and theoties about local government's investment structure. The focus in the third part is to analyze the investment structure of Liaoning Province in the context of fiscal decentralization, and come to the conclusion through studying field and protion of investment. Also in this part, we will find out the shortcomings of investment structure of Liaoning Province and analyze the reason.By using measurement methods, the fourth part will analyze the effect of investment structure to find out the connection between economic growth and expenditures. Also, there are some indicators. such as volatility factor of economic growth, to measure the structure of government investment.In the fifth part. there are certain views and suggestions.There are some suggestions given from four differernt aspects, such as investing in the important area, making sure the princle of government investment, etc.The key points are the third. fourth and fifth parts.There are combining methods of stardand researching and empirical researching in this paper. By using horizontal and vertical comparison methods, it will come to the conclusion that the whole investment structure of Liaoning Province is healthy, although there are some shortcomings.Some writers had found out the issues of investment structure of local government on the respect of the whole state. While, some writers only did some reseach on the effect of local government's investment structure. There is an innovation of combining the former two attidutes. But due to the limits of studying ability, the paper still has a little shortcomings such as result deviations.