Study On The Private Investment Efficiency And Its Influence Factors In Gansu

In recent years, because of the great attention of the country, private investment in China has achieved rapid development. The private investment in Gansu Province increased year by year, which will play a more and more important role in the economic growth in Gansu. However, the overall level of Gansu Province’s folk investment is still relatively low, and it is obviously that the private investment in Gansu exist the problems of small investment scale, unreasonable industrial structure, narrow financing channel. Therefore, it has become an urgent problem to solve in the future economic development, which is to measure Gansu’s private investment efficiency and analyses its influence factor accurately.Firstly, based on the reviews of development history and present situation, this paper analyzed problems of the private investment in Gansu. Secondly, depending on the data from1978to2011and by using the two level of CES production function model, this paper measured the private investment efficiency of Gansu Province. Finally, by use of the error correction model, this paper analyzed all kinds of factors which affecting the efficiency of private investment in Gansu Province, then put forward some policy suggestions to improve Gansu’s private investment efficiency.