Research On The Efficiency Of The Local Government Public Investment In China

With the arising of new public management movement, the government publicinvestment problem has attracted extensive attention from the academia. The presentresearch literature on government public investment mostly towards qualitative fromtheoretical level, most of all empirical study about government public investmentconcentrated in abroad. In china, less study has been done on government publicinvestment, especially the empirical research on government investment efficiency.Local government, which is a nexus in our government macro management and publicservices, lifting the government investment efficiency of local government is importantto implementing national strategies. This thesis is about the empirical research ongovernment investment efficiency, first of all, the concept of government publicinvestment and government investment efficiency are clearly defined, foreign anddomestic research commonly believed that, public investment covers the productive andunproductive investment. This paper divided the scope of public investment intoinfrastructure investment, educational investment, health investment, scientific andtechnological investment; then according to the situation of our government input andoutput of public investment, redesigned the evaluation index system of efficiency. Bothpracticality and effectiveness were taken into consideration in terms of specific indexselection. Domestic general select GDP as the evaluation indexes of productive output,this paper argues that the method is unreasonable, and adopted direct output ofinvestment in alternative, for example: the density of the network, the ratio of effectiveirrigation area, per capital electricity production and so on. Then combined with theoverall situation of our country government public investment, focus on the empiricalanalysis of the current situation of the local government’s public investment efficiencyin our country, measured the efficiency of public investment in various cities andprovinces from economic efficiency, social efficiency and overall efficiency, studied the regional characteristics of China’s local government public investment combined withthe latest division standard of our country. At last, based on the results obtained, twopolicy suggestions about lifting government investment efficiency are presented.The experimental results show that, the overall scale of China’s public investmentcontinued to expand, But it is slower than the growth of whole social fixed assets;Public investment structure is becoming more rational, Chinese government began toincrease the productive investment, and gradually increasing the proportion ofEducation, health, and scientific and technological in total investment; the difference ofChina’s local governments at public investment efficiency is obvious, In terms ofeconomic efficiency, productive input and output points is in low-scoring, The easternregion is superior to Midwest. In social efficiency, the situation of Non-production inputand output is better, the Midwest region is superior to eastern region. In overallefficiency, the level of overall input and output is superior to economic efficiency andsocial efficiency. In addition, central regions have a height advantage on regionalrankings. In general, public finance and social and economic development have putforward the demand to local government public investment in our country,objectively requires local government investment transform the functions. Hope thisresearch can be a reference in theory and method for the reform of government publicinvestment.