Chinese Public Investment On The Impact Of The Development Of SMEs

SMEs in developed countries that have mature market economy have a very important position, because of its flexible management style, organization cost, convenient transfer, in our country such a large population, vast territory, economic development very different levels of national significance is even more important. And public investment as an important means of regulating the economy, are also under the provision of public goods, quasi public goods. Expenditure structure and manner of public investment has important implications. Study the impact of public investment in SMEs, specific analysis of public investment in physical capital expenditure and expenditure on non-material impact of small and medium enterprises, improving the future of China's market economy has important reference valueAccording to the different nature of public investment spending, the first use of cointegration regression and the ECM model to the physical capital investment, public investment in education and R & D investment in the static impact on SMEs, after the impulse response using SVAR model of the different nature of public investment SMEs dynamic effects of long-term and short-term, has concluded that material capital expenditure had no significant effect on SMEs, and the impact of public education and R & D investment in SMEs in the short and long term have different performance. Then the path analysis combined with endogenous growth theory study the impact of public investment in SMEs in the internal mechanism, concluded that the reason why public investment in education and R & D investment impact on SMEs, because human capital this non-factor particularly is important for SMEs. Eventually on the support above conclusions, this paper presents some suggestions and countermeasures.