Study On The Way Of Government Investment In The Context Of Supply-side Structural Reform

After the 2008 financial crisis,the economic development of our country came into a "new normal" economy.Our country's economy faced many challenges,such as: economic transition,structural adjustment.For a long time,Demand was regard as the key pattern,while led to the contradiction in the current supply and demand.What's more,the "middle-income trap" also put the contradiction be more worse.On the 11 th meeting of central finance,Xi Jinping stressed that we should to increase the aggregate demand,at the same time,we should to promote the economic supplyside structural reform,aim to improve the quality and efficiency of the supply system,enhance the sustained economic growth.Government investment has played an important role in economic reforms.In the period of planned economy,the government investment played the role of mobilize resources and helping our country change from the agricultural country to the industrial country;In the period of market economy,the government investment plays a guiding role for arousing private capital,foreign capital,helping our country economy change from a planned economy to market economy.In economic crisis,played the government investment stimulated our economic recovery early as early.As China's economy came into the "new normal",the government investment also came into a dilemma.On the one hand,the rate of return on investment became less and less,high leverage in government debt,on the other hand,the investment structural contradiction was increasingly obvious.Government investment in the supply side has significant connection with the supply-side reform.Government investment has the supply effect of and the demand effect,under the Keynesian demand management,government investment focused on the demand effect,the investment regard as one of the troika which drive economic to growth.However,supply management is more focused on the supply side factors,such as: capital,land,labor,system and technology.Supply side structural reform in our country had clearly put forward the five tasks: address overcapacity,reduce inventory,deleverage,lower costs,and bolster areas of weakness.After carefully sort out the theory,the main idea and the practice of supply-side economics,combining government investment connotation and historical role,analyzing the current dilemma of government investment and deficiency.I came to a conclusion that government investment is a big focus of the supply-side reform,government investment has relation to the five tasks of the supply-side reform.Under the new economic environment,the goal of government investment and the measure of its effectiveness is whether to achieve five major tasks of the supply-side reform.The five tasks can be divided into two parts: effective supply and invalid supply,so the general goal of the government investment is to reduce the ineffective supply and to raise effective supply,reducing invalid supply,inventory optimization and control increment,incrementally stock to dissolve;On increasing the effective supply,enlarge the supply capacity of enterprises,improve the ability of the government public service.