Study On Government Investment To Promote Economic Growth Of China

The purpose of the dissertation is diverted to study government through investment in promoting economic growth and pull role on private investment, which could objectively understanding the economic growth of government investment promotion and restriction factors. Through the analysis of these effects, and puts forward Suggestions to deal with,, so that government investment can better stimulate economic growth.First, we analyze the theoretical relations between the government investment and the economic growth by the literature searching and the reviews. We analyze the present situation of Chinese government investment analysis, and analyses the since2008to present the government investment and proved effective. Analyzing the date of1995-2009China’s GDP, government investment, investment, and labor quantitative are using the econometric models. The results show that the government investment plays an important role for economic growth and government investment to promote economic growth.Secondly, the use of the IS-LM model of government investment crowding-out effect, And deduced government investment crowding-out effect multiplier. Performance through the analysis of the government investment crowding out private investment, draw the main reasons:the competition of the Government and Private Investment unreasonable government investment crowding out private investment, government investment management system is imperfect and the financial system is not perfect.Finally, in view of the negative impact on economic growth for China’s government investment, in order to avoid the negative impacts of the China’s government investment on economic growth, this thesis gives several solutions:First, adjust the scale of government investment:a clear scope of government investment and the importance of funding and repayment risk; Second, optimize the structure of government investment:a reasonable increase in investment in agriculture, education, and high-tech industries:third, and guide private investment;Finally improve the government’s investment regulatory regime.