Research On Investment And Financing Of Infrastructure

In recent years many scholars have focused on the reasons from the Chinese fiscal decentralization and local governance perspective to the study on the development level of infrastructure to improve rapidly. Why the Chinese local governments and officials are so keen on infrastructure investment, the direct reason is to promote the local economic growth, promote the development of local society, if further study this investment behavior ad Chinese unique political mode, How the investment behavior will have the inherent logic ?In order to test the effect of local officials face different political promotion incentives to the hardware infrastructure and software infrastructure investment may produce, this paper collected 17 prefecture level city in 1990 to 2012 transportation and education culture kind of infrastructure investment data of the Henan Province, on the traffic and educational and cultural infrastructure respectively as the hardware infrastructure and software foundation a facilities representative, in order to proxy variable into the local officials in the model, but also collected a sample period of each prefecture level city mayor’s office at the information data, officials term and remote communication as the core of the explanatory variables, the regression results validates the two assumptions made in this paper, that is in the political promotion incentives, local officials preference for hardware infrastructure, preference and the software infrastructure investment is less than the hardware infrastructure investment, which explains why after the reform and opening up of transport infrastructure level has been rapid development to a certain extent, and even some parts will appear over investment problem. Local officials in preference to the transportation infrastructure investment, the most fundamental goal is to promote the area economic growth, highlighting his achievement in the term, so get a promotion.In the latter part of this paper and are used to estimate output elasticity of total infrastructure capital and classification of the infrastructure capital, discusses the problem of optimal scale of investment of different types of infrastructure, has a strong practical significance to this part of the study, the investment in infrastructure construction in the concrete should be reasonable arrangements for investment priorities, make the coordinated development all kinds of infrastructure, this part of the study results have certain reference significance. Finally, this paper puts forward some suggestions on the innovation of infrastructure investment and financing.