An Analysis Of The Impact Of Public Investment On Private Investment In China

After 30 years of reform and opening up, China's economic development has made remarkable achievements in economic output has surpassed Japan to become the world's second largest economy, investment in China's economic development process played a very important role. 2008 global financial crisis, the world economy into a quagmire, the Chinese government promulgated the "four trillion" investment plan, to invest in our country again after the financial crisis is still able to maintain rapid economic growth an important force. However, as the economy entered the “new normal”, China's economic growth rate began to decline, the economic consequences of the problem began to highlight, overcapacity problems to be solved in public investment as the main force to promote economic growth has shown a lack of stamina, China's economic growth momentum needs to private investment in the conversion. And on the relationship between public investment and private investment between academia has long been debated, public investment in the end is Crowding in or out of private investment is still inconclusive. Thus, it is necessary for the impact of public investment on private investment in research, not only to find our public investment and private investment in the development process currently existing problems, but also helps to clarify the relationship between public investment and private investment of between for the development of our investment policy, adjusting the structure of public investment and private investment and realize the coordinated development of regional economy structure, complete industrial restructuring and upgrading, orderly and quickly eliminate backward production capacity, thus contributing to economic prosperity.Firstly, on the previous literature has combed summarize, then the use of macro-economic model to analyze the squeeze on public investment crowding out private investment, and summarized the development course of public investment and private investment and problems, then on the basis of theoretical analysis and our special conditions on the use of 1980 to 2014 public investment, private investment, total output level of society since the reform and opening up data constructs VAR model, and investment in infrastructure, investment in education and scientific research component of the functions of the government investments in public investment as the explanatory variables, from the perspective of the total amount and structure of the relationship between the perspective of the effects of public investment on private investment in the long term, the results show that, in the long run our public investment squeeze private investment, but appeared in the short-term weak substitution effect, infrastructure investment and investment in research and education are having to squeeze into effect on private investment, and government functions to private investments generated investment crowding-out effect. Finally, our public investment and private investment in the development process problems and empirical analysis, put forward the corresponding countermeasures.