Analysis Of The Effect About Public Investment On Urbanization In China

From the third plenary session of the 15 th central committee in 1998 to the 18 th national congress of the CPC in 2012, all the party and national important meeting mentions the urbanization, the related instructions be made, urbanization become the country’s overall development strategy. Thus, the development of urbanization Chinese become the social from all walks of life, and even the global focus. In 2014 September, the pilot work of new urbanization forum was held in Beijing, the State Council Premier Li Keqiang stressed, the development of economy of our country greater downward pressure, to maintain steady economic growth, we must give full play to the urbanization of this enormous demand factors, the expansion of domestic demand, and stimulate investment. And further emphasized, urbanization as a comprehensive carrier, for the urban and rural structure crack can play an effective role in promoting.In the stage of rapid development of urbanization, government play an important role, In particular, the impact of public investment, the influence of the structure, scale and efficiency of public investment to urbanization has become the focus of academic research. Analysis of public investment in the process of urbanization will have important practical significance.This paper analyzes the factors of public investment present situation, existing problems and the influence from the angle of theory. Then, from the structure, efficiency and regional distribution to analyses the current situation of public investment. And points out that public investment mainly has the following five problems, positioning is not clear, the lack of scientific decision-making, management mode is single, single source of funds and inadequate efficiency.And points out the four factors of public investment affect urbanization, the fiscal budget and allocation ratio, the objective of economic development, the coordinated development of regional rural development.This paper empirical analysis the influence of industry public investment to the urbanization, and dynamic co-integration relationship between public investment and urbanization. Based on the vector auto regression model and co integration test, the result is that to promote the role of public investment for urban development, long term benefits than the short-term benefits, non-productive public investment in urbanization promotion effect is better than that of productive public investment in urbanization promotion effect.This paper proposes to promote the healthy development of urbanization, and the optimization of public investment policy recommendations. The first is to maintain the moderate scale of public investment, second is a reasonable allocation of public investment structure, third is to give full play to the efficiency of public investment, fourth is to broaden the financing channels of public investment, and fifth is the scientific choice of the urbanization development model.