Research On Economic Impact Of Heilongjiang Highway Construction Based On CGE Model

Heilongjiang province completed large-scale highway construction investment during the “three-year battle” to promote regional economic development. Scientific evaluation of the economic impact of road construction has important practical implications for policy summary and adjustment. Therefore, this paper constructed a CGE model to simulate and evaluate the industrial development and the overall economic impact of highway construction in Heilongjiang province on the basis of analyzing the relationship between highway construction and regional economy.The CGE model of highway construction was constructed according to the application principle of CGE model and the relationship between highway construction and economic development. Then the industry departments were divided reasonably based on the input-output table of Heilongjiang province in 2007 and the preparation and balance of the macro and micro social accounting matrix of Heilongjiang province was completed.In this research, GAMS software is applied to solve the CGE model of highway construction, and the impact of highway construction investment on industry development is analyzed. Based on the balanced solution of the basic year, it simulated the fluctuation of the total output of other industrial sectors by changing the investment of highway construction in different years. In addition, the intermediate input demand of highway construction to different industry departments was analyzed and then the results of the CGE model and input-output method were compared and analyzed.According to the simulation results of the model, the GDP change and the investment benefit multiplier of Heilongjiang highway construction were analyzed and compared with the investment multiplier of China. And the impact of consumption and commodity flow were analyzed. And then based on the analysis of the results, the policy suggestions of the highway construction in the regions of Heilongjiang province were proposed according to current situation of economic development and highway construction.