An Empirical Study Of Relationship Between Investment And Financing Platform Of Local Government And Economic Growth

In the 1990 s, Local government financing platform began to appear. It attracted widespread attention. Especially after the 2008 financial crisis, it has established a large-scale financing platform. After a while,various risks happen. Platform operating at a variety of issues. These conditions make the scholars hold different attitudes with local government financing platform about future capacity of development.In this paper, it is explored the relationship between economic growth and local government financing platforms in Guizhou Province, which combined with the actual situation, the platform economic and fiscal development in Guizhou Province by using econometric models. The purpose is to provide theoretical support for the local government financing platform and economic growth relationship, and to provide policy recommendations for the better development platform advantages, to make up for lack of a platform, to promote the economic development of Guizhou Province.In this paper, the specific work carried out as follows:First, it has a comprehensive analysis to research results of local government financing platform beyond of domestic and foreign scholars. It is summarized previous research on platform definition, nature, risks, and the relationship between the economy increasing and platform. Predecessors mainly think that platform promoting the regional economic growth, but at the same time it should be strictly guard against its risks.Secondly, this paper chose the Guizhou Province which is located at Poor foundation, but it developed fast, to analyze Guizhou’s economic base status and financial capacity. By analyzing the status of the financing platform, the paper summarized the basic developments of existing platform.Furthermore, to analyze the possible relationship and factors between the local financing platforms in Guizhou Province, and to research the influence of each other, which including the factors and the impact of inhibitory factors. The main factors affecting including two parts, investing to the local infrastructure and the degree of development in financing platform.Then, through using the measurement models, this paragraph analyzed the economic increasing impact of infrastructure investment, of their own development extent of financing platform for economic growth. The results showed that both of them are belong to the positive impacts. It is also means that the degree of self-development and investment have produced a catalytic role for economic growth.Finally, for the reality of the current situation in Guizhou province and the development of platforms, giving a series of suggestions and opinions as follows, putting a clear positioning for platform, establishing a sound regulatory mode with debt and financing mode, improving their level of development. To play a role in the platform itself as the times, it will contribute to the local economy as well as the entire economy in china.