Research On The Effect Of Government Investment On Economic Growth In China

The purpose of this study is to study the influence of the government investment to the economic growth through the analysis of the status quo of various industries the government investment,as well as studying how the government investment effect the private investment in different industries.The paper give the reasons why the government investment have positive or negative effects on the economic growth from a practical perspective,thus we can provide reference advices for the government investment activities in the future,and improve the efficiency of the government investment.The research methods are mainly two points: Firstly,literature research.We can have a comprehensive understanding of government investment trend through combing the related government investment literature at home and abroad to provide a research direction for this paper.Secondly,theoretical and empirical analysis.This paper expounds the relevant theories of government investment,analyzing the present situation of the different industry from the scale,structure the government invest to,and discover the problems existing in the investment of our government.Establish the linear relationship model between government investment and economic growth.This paper uses the relevant data from the year 2004 to 2013 of China statistical yearbook to analyzing the government investment,finding the following problems:(1)the scale and structure of the three times industrial investment is not reasonable;(2)the government is in favor of economic investment and lack of social investment;(3)the government investment efficiency is not high;(4)Effective supervision mechanism to the government investment is not perfect.Model analysis conclusion: under the condition of limited resources,the government excessive investment will have certain extrusion effects on private investment,and as a result of the benefits the folk investment is much better than government,economic growth will be restricted by certain.In addition,the government should pay attention to the long-term economic development,not only the immediate interests,they should be appropriate to increasing the investment to the agriculture.In the end,the paper puts forward relative policy suggestions to promote the government investment to work effectively from the perspective of the government investment scale,investment structure and the government investment supervision mechanism.