Study On Benefit Of Rural Infrastructure Investment In Jiangsu Provice

Rural infrastructure is the material basis for the rural economy and the peasant living, as well as the important part of new socialist countryside construction. In Jiangsu Province, there are still a range of issues in rural infrastructure investment, such as the investment field is small, investment benefit is low, and so on. Based on public goods theory, western investment theory and economic growth theory, this paper analyzes the difference between the understandings of rural infrastructure from domestic and foreign scholars, then defines the region of the rural infrastructure, emphatically analyzes the investment benefits of rural infrastructure in Jiangsu Province by using theoretical and empirical methods. Finally this paper tries to put forward some policy suggestions about ameliorating rural infrastructure investment.In main part of this paper, first, it systematically describes present situation of rural infrastructure investment in Jiangsu Province, including the status of rural fixed-asset investment, as well as the rural water conservancy construction, rural transportation construction, rural education, rural health, rural information construction etc., in order to conclude the characteristics of investment in rural infrastructure and provide background information for further empirical research. Secondly, it takes researches on rural infrastructure investment benefit of Jiangsu Province from the total output value of agriculture, forestry, animal husbandry, fishery, and net income of rural household.Based on the annual data from1992to2007about rural infrastructure investment in Jiangsu Province, this paper uses granger causality test to prove the relationship between rural infrastructure investment and the total output value of agriculture, forestry, animal husbandry and fishery. By using C-D production function model, it estimates the contribution portion of the rural economic infrastructure investment, the rural social infrastructure investment to the total output value, and then builds rural infrastructure investment benefit econometric model for measuringt and empirically analyzing the rural economic infrastructure investment in Jiangsu Province. From the side of net income of rural household, this paper also build panel data model for empirical analysis on rural infrastructure investment benefit, using the panel data of13cities in Jiangsu Province from2005to2007.The results of empirical reaserch indicate that:the current rural economic infrastructure investment benefit in Jiangsu Province presents a descending trend, but overall, the return on investment remains on high level. In Jiangsu Province, the rural economic infrastructure investment stock has a positive significant effect on the total output value of agriculture, forestry, animal husbandry and fishery; but the effect of the peasents’ average education years is not significant. Meanwhile, in13cities, rural infrastructure investment also plays a significant role in promoting the net income of rural household; but when the amount of the investment is certain, due to geographic locations and economic development levels, the net income of rural household in13cities have significant differences between and the average value.