A Study On The Effect Of Chinese Government Investment On The Process Of Industrialization

The 19 th CPC National Congress of the Party pointed out that the development of industrialization in China should realize the transition from high speed industrialization to high quality industrialization,constantly enhance the supply quality of the real economy,accelerate regional coordinated development,promote the effective integration of industrialization,informatization,urbanization and agricultural modernization.It makes our country a new industrialized country with strong real economy,high tolerance and sustainable development.As an important force in the social and economic development,the role of the government in the development of industrialization has never been fixed,especially in the critical period of the change in the goal and mode of industrialization development.This requires us to straighten out the role of government investment at different stages of industrial development to clarify the choices of the path of industrialization development in the East,Central,and West regions,so as to continuously stimulate the vitality of civil subjects and realize the coordinated development of regional industrialization,so that China will soon enter the ranks of the new industrialized countries.Firstly,this paper induces and summarizes the previous studies,and defines the related concepts in combination with the purpose of the research.Secondly,Combined with previous theoretical research,this paper expounds the role mechanism of government investment in the stage of industrial development,and puts forward two hypotheses.Finally,on the basis of describing the status quo of government investment and industrialization data in China,Eastern,Central and Western regions,this paper uses the unit root test,co-integration test,impulse response function,and other methods to empirically test the data from 1996 to 2015 in China.The empirical results verify the previous assumptions and get the following conclusions:(1)Productive government investment,public government investment and private investment have certain positive effects on the progress of China's overall industrialization.(2)The effects of productive government investment and public government investment are different in different stages of industrialization development.(3)There areshort-term and long-term differences between the effect of productive government investment and public government investment on the process of industrialization.Based on the results of the empirical test,this paper puts forward policy recommendations accordingly.