A Comparative Study Of The Relationship Between China And Russia’s Infrastructure Investment And Economic Growth

In the many factors that affect economic growth in China and Russia, investment in infrastructure and scale are very important aspects of infrastructure investment in China continues to increase and has constituted a major factor in driving economic growth, while Russia has long been the basis of the existence of lack ofinfrastructure investment issues, which the Russian economy had some impact, but for China, there has been too much investment to say, in China the "new normal" in the face of the economic situation, whether for economic growth also rely on infrastructure investment to stimulate the problem also attracted the attentionof many scholars. In this paper, in order to demonstrate three points: First, presenting between infrastructure investment and economic growth inverted "U" shapedrelationship; the second is using 1988-2013 data infrastructure investment between China and Russia, the two countries’ infrastructure investment optimal size estimate. Third, the results of the different infrastructure investment between China andRussia cause analysis and gives policy recommendations.The content of this article can be divided into five chapters: The first chapter discusses the meaning of base installation, type and feature, noting that infrastructure investment to economic growth and boost effectiveness lack of economic growth inhibitory effect. The second chapter analyzes the current situation of Sino-Russian economic development and infrastructure investment. Chapter Three models were estimated utilizing Barrow optimal size of China and Russia, investment in infrastructure, the results and the two countries were compared explained. The fourth chapter analyzes the causes of the two countries with different results. The lastchapter gives the corresponding policy recommendations.After elaborate obtain the following assertion: When Chinese infrastructure investment-GDP ratio was 17.6%, the optimal size. China is seeing a trend beyond the optimal size since 2008 after. Russia optimal size for infrastructure investmentaccounted for 12.25 percent of GDP, while Russia accounted for far less than the actual value. Therefore, China should accelerate investment in innovative infrastructure, standardized way of investment, infrastructure investment management reform. Russia should have a successful experience for the accelerated focus on government investment in infrastructure, and take diversified financing channels, increase the Far East and Siberia infrastructure investments and learn from Japan, Germany and so on.Contribution of this paper is to use China and Russia from 1988 to 2013 datafrom empirically estimate the infrastructure investment in China and Russia, the optimal size of the two countries, which can scale infrastructure investment between China and Russia have a general judgment, and the corresponding causes and policy recommendations.