Local Government Public Investment And Economic Growth

Since the reform and opening,China's economy has maintained a rapid growth rate of nearly 10%for many years,ranking as the second largest economy in the world.Excluding the driving force of imports,exports and household consumption,as well as the urbanization and demographic dividend,the impact of investment on economic growth can be described as extremely successful.In the meantime,government investment in public domain,including public infrastructure investment,public service investment,public security investment and investment in education,science research and medical treatment,have played an important role whether in promoting economic growth or in ensuring social fairness,promote social welfare and other aspects.With the continuous increase of government public investment,some problems in public investment have become increasingly prominent.For example,the definition of public investment is not clear,the lack of rational investment decision-making and follow-up supervision mechanism,the unreasonable investment structure and so on,leading to the phenomena of "absence","offside" and "dislocation" in public investment are common,which have undermined the credibility of the government and hindered the social and economic development.The existing researches at home and abroad do not make a consistent conclusion about the relationship between government public investment and economic growth.More importantly,there is obvious externality in public investment.In the past,the literature basically adopted the traditional Measurement methods,and the externality didn't take into account when they do the empirical analysis.In view of this,based on the previous theoretical studies,this paper introduces the introduction of spatial autoregression(SAR)model and uses the latest relevant data to explore the relationship between government public investment and economic growth.The results show that there is a significant spatial correlation between local economic growth,cultural and educational investment and economic growth are positively correlated;livelihood security investment and economic growth negatively correlated;and there is no significant correlation between public service and safety investment,infrastructure investment and economic growth.And the impact of different types of public investment on economic growth there is a significant spatial difference.In view of the above findings,this paper gives the corresponding policy recommendations,in order to supplement the previous studies and provide some theoretical basis for the government's public investment decision-making in the new age.