Influence And Efficiency Of The Guanzhong-tianshui Economic Region Local Government Investment To Economic Growth

Local government investment is an effective way to promote the local and even national economyrapid growth. In2008, for the economic recovery in China, the central government launched the4trillioninvestment plan, and asked local governments to provide the corresponding matching funds. And then, thelocal governments had launched a20trillion yuan investment plan. Since July2012, Guangdong, Nanjing,Tianjin, Chongqing and other governments put forward a new plan, in order to promote investment andeconomic growth. According to preliminary statistics, the financing demand of investment plan is about7trillion yuan. The people from all walks of life think that a new round investment led by local governmentis coming, and it will introduce more of major investment plan. Due to the form is insufficient standardfrom central to local fiscal, however, the local government investment behavior has not been effectiverestraint and incentive. While4trillion investment stopped the economic slump, the investmentefficiency is very low with strong contrast to the massive investment, bringing about local government debt,financial growth, bank lending has become increasingly cautious, and folk capital investment is relativelylow.Thus, reasonably regulating the behavior of local government investment plays an important role inpromoting the region’s economic development. Therefore, this paper will focus mainly on two aspects. Oneaspect is to investigate the local government investment and economic growth in long-term and short-term,as well as the impact of local government investment on economic growth; Another aspect is to measurethe economic zone investment efficiency of local government. Specific terms, the first chapter of thisarticle makes an overview of the research background, research purpose and significance of this article, andattempts to find the effective way of investment of local government to improve the efficiency of localgovernment investment, to promote economic growth in the region. Next, on the basis of existing researchabout the government investment efficiency problem at home and abroad, it explains the thesis researchideas, the structure arrangement and the possible innovation and shortage. In order to ensure the study hasthe full theory basis, the second chapter instructs the theory of local government investment around byKeynesian theory on the basis of defining the related concept. Using error correction model, the thirdchapter studies on the relations between the various kinds of investment(local government investment, FDI,and private investment) and long-term and short-term economic growth based on the analysis of the statusof local government investment since the strategy of “western development”. Finally, using the impulse response function and intuitive reflects the local government investment produce positive effect oneconomic growth during the study period. Based on the study of the stability relations between the localgovernment investment and economic growth, the fourth chapter calculates the discretion of the localgovernment investment efficiency in the guanzhong-tianshui economic zone. Among them the first partanalyze the current situation about the economic zone investment from the local government investmentscale, investment structure and investment output, found that the efficiency of local government investmentis serious damage. By building super efficiency DEA model, the second part systematically evaluates localgovernment investment economic efficiency, social efficiency and the comprehensive efficiency,specifically making out the presence of the efficiency loss of each local government investment.Based on the above study of this paper, we obtain three conclusions:(1) in the guanzhong-tianshuieconomic zone, local government investment and economic growth exist relatively stable long-term andshort-term relationship. And the influence of the government investment on economic growth in the longterm is more than the influence of FDI. At the same time, the effect of the local government investment oneconomic growth in the short term has a certain time lag.(2) The reflect of GDP per capita to the impact ofthe local government investment is positive all the time, and continue to rise, which can show the importantrole local government investment on economic growth.(3) The guanzhong-tianshui economic zone localgovernment investment as a whole has not reached the highest efficiency, and the difference between thelocal government investment is so large.