Empirical Study On The Effects Of Government Guiding Funds

In recent years,government guiding fund have become an important means of using fiscal funds for the purpose of encouraging social capital to enter industries and areas where investments are relatively weak.After years of operation,guiding fund has entered an all-round development stage and the number and the size of funds have grown rapidly.After studying the theoretical basis of the government guiding funds,this paper analyzes the operating models of foreign government guiding funds and looks at the status of the domestic industry.Through empirical analysis of data from government guiding funds,we verified its guiding effect on the direction of social capital investment and the promotion effect on economic pull.We discussed in depth whether the two are affected by regional factors.Finally,based on the research results of this paper and the specific situation of China's establishment of government guiding funds,the limitations of this study are proposed and corresponding policy recommendations are provided for the operation and management of future government guiding funds.As for now,the domestic research on government guiding funds is mostly limited to qualitative research and focuses on the analysis of the establishment and development status of performance evaluation system.This article combines qualitative and quantitative research,literature and data analysis and other research methods,and fully understands the mechanism by which government guiding funds play a guiding and promoting effect.It examines whether government guiding funds fulfill their mission in guiding private capital investment,and promoting technological progress.2015 and 2016 are the peak period for the establishment of government guiding fund in China.It has expanded its geographical location,stage,and direction.The relevant data used in this paper covers the establishment of guiding funds between 1998 and 2017.The sample size is large and the data is relatively new.In the empirical analysis section,this paper selected 9 years of domestic data from 31 provinces,conducted a panel regression of the guiding effect and promotion effect model nationwide,and then divided the provinces into eastern,central and western regions for regression.The specific content of this article includes six parts:Chapter 1,Introduction,expounds the economic and political environment of guiding fund,highlights the significance of the study.Chapter 2,literature review and theoretical analysis,focuses on the theoretical basis for the establishment of government guiding funds and the exertion of market effects.It also summarizes the literature on the development of guiding funds in both China and the Western countries and serves as a foundation for further quantitative research.Chapter 3,the development status of government guiding funds,expounds the fund flow mechanism and the division of powers and responsibilities of the parties when operating guiding funds in China.Chapter 4,empirical studies of guiding effects,establishes models,and empirically studies the impact of government guiding funds on equity investment markets in various provinces in China.Chapter 5,empirical studies of promotion effects,same as the fourth chapter,based on an empirical study of the role of government guiding funds in promoting economic growth,discusses its contribution to China's macroeconomic development.Chapter 6,conclusions,gives policy recommendations based on the research results and subsequent analysis,and discusses the limitations of the research and the future direction of the research direction.This paper analyzes the purpose of setting up government guiding fund through externality theory,information asymmetry theory,conscience cycle and signal transmission theory.The investment of financial funds plays a guiding role in private capital investment,at the same time,the guiding funds also play a catalytic role in promoting industrial restructuring,promoting capital flows,resolving regional imbalances,and ultimately accelerating economic development.The empirical results show that at the national level,China's government guiding funds have a significant guiding role in social capital investment,while the sub-regional regression found that it only has a positive driving effect in the eastern region,while the other regions' guiding effects and crowding out effects are not obvious.With regard to the promotion effect,the establishment of government guiding funds can significantly promote the growth of the economy of all provinces.This effect is significant in the central regions,but not in the western region.It may be related to the late establishment of government guiding funds in the western part of China,imperfect mechanism development,and the need to improve the investment environment.According to the conclusions,this paper puts forward several suggestions for the government guiding fund's operation management model in China,including that the government should adjust the investment of fiscal funds and the number of guiding funds to establish and improve the fund approval mechanism;it should improve the exit mechanism as soon as possible and reduce the government Guide the risk of withdrawal of funds;it should encourage investment diversification,reduce the restrictions on the geographical investment;it should learn from foreign experience,with more types of institutional investors and so on.