Study On The Influence Of Private Capital's Participation In Urban Infrastructure On Economic Growth

Along with the advancement of marketization reform of the economic system,the infrastructure construction in China has achieved rapid development.The scope of the infrastructure has been expanded and standards have been improved continuously.The infrastructure has become an important material basis for the sustained and stable development of the social economy and the rising living standards of the people.The sustained healthy and rapid development of infrastructure requires sufficient capital investment as a support,but for a long time in our country infrastructure construction mainly relies on fiscal expenditures,and the government is facing heavy financial pressure.The long period of infrastructure construction,large capital investment,and high risk of returns make the private capital investment infrastructure less active.Infrastructure projects are facing a huge funding gap at this stage of rapid expansion of infrastructure demand.At the present stage of increasing demand for infrastructure,there is a huge gap in project construction funds.At the same time,profit-oriented private capital investment infrastructure has triggered a series of problems,such as rising prices of infrastructure services,declining service quality,and environmental pollution,which have constrained social economic development.Therefore,whether private capital investment infrastructure can promote economic development deserves objective and scientific thinking.The paper starts from the perspective of economics,adopts theoretical and empirical analysis methods,and combines China's infrastructure development practices to study the impact of private capital participation in the infrastructure sector on economic growth.Firstly,this paper summarizes the literature on private capital participation in infrastructure from both theoretical and empirical studies,grasps the research status of domestic and foreign scholars,and analyzes deficiencies.Then from the theoretical perspective,analyze the relationship between infrastructure and economic growth,analyze the mechanism of private capital's participation in infrastructure on economic growth,and define the scope of infrastructure and private capital.Then,quantitative analysis and comparative analysis were used to analyze the development history of China's urban infrastructure financing,the status quo of private capital and urban infrastructure development,and the current status of private capital's participation in urban infrastructure.Based on this,this paper uses the panel data of 27 provinces in China and four municipalities from year 2007 to 2016 to conduct empirical analysis to explore the impact of private capital participation in urban infrastructure on economic growth,and to test and interpret the estimated results.Finally,aiming at the current problem of private capital's participation in urban infrastructure,it proposes targeted and practical proposals such as open market,diversification of financing channels,risk sharing,and reasonable supervision,reflecting the systematicness and comprehensiveness of the research.