An Empirical Analysis Of Infrastructure Investment And Economic Growth In Shandong Province

Since the reform and opening up,China's economy has been developing rapidly.Behind the numerous "Chinese miracle",we can not do without the promotion of infrastructure investment.In 2008,in response to the financial crisis,China implemented a "four trillion yuan economic stimulus plan",in which more than half of the investment was in infrastructure construction.In recent years,the issue of"stop them being distracted from their intended purpose,has aroused widespread concerm in society.In 2016,The meeting of the Political Bureau of the Central Committee clearly put forward the need to revitalize the real economy and curb asset bubbles.The government work report of 2017 points out that China's real economy is facing many difficulties and needs to continuously improve its real economic capacity.In 2018,the”Six Steady,policy was put forward,and a special conference was held to make up for shortcomings in infrastructure and other fields,5o as to stabilize and effectively invest.At the special meeting of the Political Bxureau of the Central Committee in 2019,the same emphasis was placed on effective investment,encouraging infrastructure investment in transportation,energy,health and environmental protection,education and other fields.Economic growth has always been the focus of attention of scholars and governments in various countries.China has implemented the strategy of promoting economie growth with infrastructure investment for a long time.While infrastructure investment promotes economic growth,it also brings many undeniable negative effects that can not be ignored,such as unbalanced regional economic development and increasing eeonomic growth gap.Since then,it is of great significanee to study the role of infrastructure investment of reasonable scale in stimulating economic growth.Infrastructure is an important cornerstone to maintain and promote regional economic development.As a precondition for economic development,it is essential to determine the scale and type of infrastructure investment to promote regional economic growth.The provinces and provinces are three strong economic provinces in China.With the further development of the economy,the gap between GDP and the provinces and provinces is increasing.By the end of 2017,the gap between the provinces and the provinces is 2 trillion and 100 billion yuan,and the difference is 1 trillion and 600 billion yuan.In terms of infrastructure construction,Shandong once led the whole country.In recent years,infrastructure construction has been gradually increased in all parts of the countrys while infrastructure construction in Shandong has slowed down.In 2019,in order to promote economic development,the two provinces proposed to increase infrastructure construction and ease the backward situation of transportation,energy and information in the province.Then what is the relationship between infrastructure investment and economic growth?Based on the above considerations,this paper chooses the province as the research object,starting from the infrastructure investment status and economic growh status of 17 prefecture level cities,using qualitative and quantitative analysis,combining theory with practice,to study the relationship between the total investment in infrastructure,the investment in infrastructure and economic growth.According to the results of data analysis and the problems existing in the province itself,policy recommendations are put forward.In the empirical analysis,the system generalized moment estimation method is used to carry out empirical analysis.First,the second item of infrastructure investment stock is introduced.It is found that there is an inverted "U" relationship between infrastructure investment stock and economic growth.When the optimal scale is not reached,infrastructure investment has a positive effect on economic growth and turns into a negative effect after exceeding the optimal scale.The comparison of the role of infrastructure investment in economic growth shows that investment in economic infrastructure plays a greater role in promoting economic development in Shandong than in social infrastructure investment.This article is divided into five chapters.According to the content,it can be divided into introduction,theoretical analysis and literature review,mechanism analysis of infrastructure investment on economic growth,and empirical analysis,conclusions and suggestions combining with the current situation of infrastructure investment and economic growth.The first part,combined with the policy background of China,puts forward the importance and significance of choosing the province as the research object,and puts forward the research route,research methods,and possible innovations and shortcomings.The second part is to analyze the characteristics of infrastructure and related theories of economic growth,so as to build a theoretical basis for this study.By studying the direction of the impact of infrastructure investment on economic growth at home and abroad and the related literature of regional investment effect,this paper provides reference for this study.The third part,combined with the actual situation of Shandong Province,analyses the mechanism of economic grovth from the perspective of infrastructure investment stock and investment structure,and puts forward the basic assumptions of empirical analysis.The fourth part first describes the current situation of infrastructure investment and economic growth in Yunnan Province,and initially analyzes the economic growth effect of infrastructure investment from the data point of view.In the empirical part,the system GMM is mainly used.Firstly,the square term of infrastructure investment stock is introduced in view of the non-linear relationship between the two.Then,the inverted U-shaped relationship is empirically explored,and the economic growth effect of infrastructure investment is studied.The fifth part summarizes the theoretical research and empirical results.In view of the present situation of infrastructure investment in shandong Province,this paper puts forward relevant policy recommendations.