Study On The Dynamic Relationship Between The Government Investment,private Investment And Urbanization Based On Empirical Analysis Of PVAR Model

Urbanization, government investment, private investment are indispensable elements of China economic development.After the 1980 s, China’s urbanization process accelerated, gradually until the end of 2012 the urbanization rate reached 52.57%. The development of the urbanization process is dependent on the increase of investment scale, at the same time, investment scale of urbanization has a promoting effect. Under China’s current economic model, according to the investment main body of investment in fixed assets mainly divided into the government investment and private investment, the different investment subject on how to promote efficiency of urbanization, the relationship between the two types of investment is mainly discussed.Based on the 1997-2012 panel data of 30 provinces and cities in China, using the GMM estimation of panel VAR model, impulse response function analysis and variance decomposition analysis methods such as focus on the urbanization rate, government investment and private investment in the dynamic relationship. At the same time, China has a huge differences in economic development, so this article respectively in eastern China, the central region and western region modeling respectively, further analysis the government investment, private investment, urbanization rate, the relationship between the three variables and combined with the empirical results of variance analysis of the reasons, put forward corresponding policy Suggestions. Through the study of this article to be able to answer the following questions: 1. The government investment, private investment for the promotion of urbanization degree and contribution. 2. The government investment on whether it has crowding out private investment. 3. The urbanization in China’s eastern, central and western areas, government investment and private investment in the relationship between how, have what difference. To discus the problems above can be found: first, the private inwestment of urbanization role in promoting greater government investment;second, respectively, when the country in eastern region, central region, western region as the research unit of government investment has a crowding out effect on private investment; third, private investment unit of the eastern region in promoting urbanization more than the central and Western regions.