Study On Relationship Between Non-Governmental Investment And Social Development In Western China

Since the development of the western region in china, the non-governmental investment in western china has increased in a high speed, with its share in the total social investment exceeding the share of state-owed investment. Study on the relationship between non-governmental investment and social development has important practical significance for the further development of the western region of china.First, this literature described the concept of non-governmental investment and social development, defined the contents of this paper, and then described the influence mechanism of investment to social development. This literature constructed the social development indicators system, according to the theory of social development and the outcome of related literatures. The indicators system involves six subsystems, such as economic level, quality of life, technology and education, culture and health, employment and security, environment.This literature described the present situation of non-governmental investment and social development in the western of china, and then used global principal component analysis method to obtain the social development index, finally used panel co-integration method to study the relationship between non-government investment and social development.Empirical studies have shown that non-governmental investment in the west of china had positive impact to social development index. The western non-governmental investment has promoted social development in the western region in general since the development of the western region, and has played an important role in promoting the social development. In addition, the impact of non-governmental investment on social development varied from these provinces in western of china.