An Empirical Study On The Relationship Of Government Investment,private Investment And Economic Growth

Investment is one of the important means to promote China’s economic growth, and in different areas, the role of investment to economic growth is different.Investment mainly includes government investment, private investment and foreign investment, the government investment and private investment occupy the subject status of China’s total investment, and their role in the economic growth are also different.Therefore, in view of the current special national conditions in our country, on the premise of expanding domestic demand, how to optimize the investment structure, make the government investment and private investment in collaborative development, to more effectively drive economic growth in China is particularly important.In order to study the relationship between the government investment, private investment and economic growth.This article according to the new economic growth theory, firstiy,I did a detailed chart data analysis for the survey and industry of the government investment and private investment,and then respectively to do a detailed chart data analysis for the investment and economic growth difference of the eastern, central and western three big economic belt region.at last, in terms of the basises, I discussed the reasons of the differences deeply.Later, this paper first to uses a series of measures,such as cointegration test, Granger causality test, VEC model and impulse response function and variance decomposition to conduct a comprehensive inspection of the relationship between the government investment, private investment and he economic growth.And then to make the quantitative analysis for the difference in regional economic increase of the eastern, central and western three economic belt region.The results show that:(1) In the short term, the pull function of the private investment on the economy is greater than the government investment;In the long run, government investment leading role is great er than the private investment. Therefore, Stimulate short-term economic growth need to give full play to private investment;And for the healthy development of the economy for a long time, still need government long-term planning and investment.(2) There are differences btween the government investment, private investment and economic growth in the three major economic belt area.For the eastern region, there is a minimal contribution of the government investment to the economy;And private investment for it play a good role in promoting economic growth.For the central region, the government investment and private investment has a certain role in promoting in the economic growth;But the contribution of government investment to the economy is greater than the private investment.For the western region, the government investment and private investment has a certain role in promoting in the economic growth;But the contribution of private investment to the economy is greater than the government investment.Finally, This paper puts forward the corresponding policy recommendations based on the conclusion.