Public Investment And Regional Economic Development Study

China today is in a crucial stage.Our government will face many great challenges. Of them,the sharpest one,as well as a biggest problem in the process of Chinese modernization,is how to coordinate balanced development among regions.In the theory of Regional Development,a basic guiding policy and basic objective,kept by Central Government and governments at various levels,is to narrow the gaps and promote balanced development among regions.It is also a key strategy to build a moderately prosperous society in all respects and achieve modernization.The Third Plenary Session of the 16th CPC formulates a people-oriented,comprehensive, balanced and sustainable scientific development outlook.Overall consideration on regional development is the concrete manifestation of China's regional development strategies in the new historical situations.After 30 years of reform and opening-up and rapid economic development,China has made great progresses on its economy and social system.The overall national strength has increased.Living standards have improved significantly.However,there remains a distinct imbalance in development among the East,the Middle and the West regions,between urban and rural areas,and among social groups.With rapid economic and social development,the trend of imbalance widens gradually instead of being narrowed,which will not only influence national economy to keep a sustainable,rapid,and healthy development but also threaten social stability and construction of harmonious society.On the other hand,as in optimizing the allocation of resources,the Market mechanism probably exists some failure in narrowing the regional gaps,the macro control of government,especially control of public investment in the regions to narrow the gaps and balance regional development,will play an irreplaceable role.Therefore,the study on China's imbalance on regional development and the way to allocate public investment rationally has an important theoretical value,as well as practical significance.So far,domestic and foreign scholars have done a lot of researches on public investment and regional development.They succeed not only in theory,but also in empirical experiments.However,I think we can study above issues in depth,because many domestic researches are rooted on some particular aspects.Based on theories on regional development and public investment,I in this paper firstly make a brief introduction on present imbalance in China's regional development and comment our related policies;then,state relationship between regional public investment and economic growth,also study the changs pattern of regional public investment scale and structure,analyze the problem of public facility location and distribution;thirdly, introduce public investment in infrastructure,regional public investment in education, rural public investment and investment in public services respectively,and their influences on regional balanced development;fourthly,demonstrate how these factors, such as different economic systems,fairness and efficiency,and public investment of government,take effects on coodinating regional development;finally,in accordance with the above empirical researches,I will state the significance of optimizing the allocation of public investment and promoting regional balanced development.Five parts are included in my paper.First Part:Literature review(with chapter2)In this part,the major concern is on the theory of public investment and regional development,as well as other related theories.Through the study of documents,I suggest it is an important issue focused by nations on the gaps in regional development.In many developed counties,government has taken it seriously by many positive measures,such as improving transportation,providing financial assistance in education,and encouraging capital,technology,and talents to undeveloped areas,and so on.So,there's no doubt that the regional gaps in developed countries are smaller than those in developing countries.To narrow the gaps in regional development,we should pay attention not only to economic power,but also to direct and indirect roles played by government.For example,we can make full use of physical capitals, develop human capitals energetically,emphasize the importance of regulations and policies for coordinating regional development,and strengthen the function of government's public investment specializing in the area of infrastructure and financial assistance in education.Second Part:analyses on the gaps in regional development and its related policies (Chapter3)The studies show that china's economic gaps in regions has narrowed before its expansion.Social strength develops on the whole less rapidly than the gap in economic development.Concerning on our policies and systems,the gaps among the East,and the Midlle,and the West areas are expanding because of some important factors,such as preferential regional policy,imperfect system of regional investment, and regional imbalance in the allocation of investment.Third Part:analyses on the regional public investment and economic growth in regions(Chapter4)First,I will apply mathematical methods to analyze how public investment influences economic growth and what conditions restrict it,and state how China's regional public investment takes effect according to datas;Second,analyze how the scale and structure of regional public investment has been developing in Three areas(the Eastern,the Middle,and the Western) since the market reform,and how local financial expanse has an influence on the structure of public investment;Third, analyze the balanced condition of public investment location and space.These statements aim to show positive and negative functions of public investment and its restrictive conditions in the course of economic development,to reveal the capacity of public investment in Three areas and its discrepancy on economic growth.Through documents,we can see how local financial expanse plays an important role in the structure of public investment and how the factors of public investment location plays an important role in the productive forces distribution.Fourth Part:the relationship between public investment and regional development in regard to regional public education,infrastructure,rural public goods and regional public services(Chapter5 - Chapter9)Through datas,it shows how public investment gives an impact on the gaps in regional development from different regions(e.g.the East,the Middle,the West,rural and urban areas).The evidence proves that the scale and efficiency of public investment has made an obvious gap among regions.Furtherly emphasize the importance of the central government's public investment on coordinating regional development,and put forword proposals which are the increase of public investment in the area of rural infrastructure and specializing in rural education,formulating and implement the dispostion criterion of the basic public services.Fifth Part:conclusion(Chapter10)In this part,the author will systematically summarize the major findings and put forward some policy advice based on this study.