Influence Of Governmental Investment On Regional Basic Public Service Equalization (1993-2007): An Empirical Study

Basic public service equalization and its related topics had become hot topics in academic circles since the conception of basic public service equalization was put forward in the sixth plenum of the 16th CPC Central Committee, and amongst them, the subject of regional basic public service equalization is the hottest. The economy and society have been confronted with rigorous circumstances because of the negative impact of international financial crisis on our country in 2008, and under this background the central government unveiled a series of policies to rescue the market, especially a 4-trillion-governmental-investment-plan which was put forward by the central administration has stabilized the market to a certain extent. The influence of governmental public investment on regional basic public service equalization is a subject deserving deep studies, however, there has been no scholar studying on this issue at present. In the light of its important and great practical and theoretical values, this thesis will study the influence of governmental public investment on regional basic public service equalization.Based on the predecessors' studies, firstly, this thesis employs DEA method to calculate the level of regional basic public service, and then rank the 31 provinces according to the level of basic public service, finding that the basic public service of developed regions rank higher than less developed ones. Then the thesis uses the data obtained from the above section to calculate the disparity index of regional basic public service, finding that the disparity of regional basic public service is enlarging.Chapter 3 exerts panel data to analysis the impact of central governmental investment and local governmental investment on the level of regional basic public service, finding that both central governmental and local governmental investment can improve the appraisal of regional basic public service, however, the effectiveness is different, central governmental investment has greater positive impact on the appraisal of regional basic public service.Chapter 4 applies the idea of disparity explain disparity to study the relations among the disparity of central governmental investment, the disparity of local governmental investment, and the disparity of regional basic public service, finding that the disparity of local governmental investment and the disparity of regional basic public service are cointegrated, the disparity of central governmental investment, however, can't explain the disparity of regional basic public service efficiently, all of these mean that the disparity of regional basic public service is mainly caused by the disparity of local governmental investment. Based on the above studies, the thesis uses econometric methods make further study, finding that the main cause of disparity of regional basic public service is the disparity of local governmental investment, meantime, the thesis points out that the root of the disparity of regional basic public service is the disparity of regional economic development.Chapter 5 makes conclusions of the thesis and then puts forward advises.