Analysis On The Impact Of Government Governance Capacity On Total Investment Of PPP Projects

With China's economy entering a new normal,the process of urbanization is accelerating,people's demand for infrastructure is increasing,and the government is facing severe pressure on public infrastructure and service supply.The PPP model is gradually regarded by the government as an important way to solve the problem of local public goods supply and is strongly promoted.Wide.At the Third Plenary Session of the Eighteenth Central Committee,it was emphasized that the market should play a decisive role in allocating resources.As a way for the government and social capitalists to cooperate in the provision of infrastructure and public services,the PPP model can introduce social capital,lighten the financial burden of the government,provide public services efficiently and accelerate the transformation of government functions.To improve our government's governance capability.Therefore,guided by the policy of the Third Plenary Session of the Eighteenth Central Committee,the PPP model ushered in a new wave of development in China.At present,China's PPP projects have covered 19 industries,such as energy,transportation,water,ecological construction and environmental protection,municipal engineering and so on.Although there are more and more PPP projects in various regions of China,many problems in the process of developing PPP projects are becoming more and more complex,such as the low rate of signing regional PPP projects,the difficulty of landing,the beginning and the end,the complex causes and so on.As one of the core participants of the PPP model,the government plays a vital role in all stages of the whole life cycle of the PPP project.Therefore,starting with the current situation of PPP project promotion,this paper makes an analysis of the reasons for the relevant government,and then puts forward the basic hypothesis of how the government governance ability affects the total amount of PPP investment,and then studies the impact of the regional government governance ability on the total amount of PPP investment by empirical test.Local governments in all regions of China are independent of each other,and each of them undertakes the supply of local public infrastructure and services.At the same time,they can choose and decide the supply mode independently.Under the tide of vigorously promoting the PPP mode in China,how can local governments quickly locate themselves in the PPP project and make sure that they have or add their own modes?Strong ability is essential for healthy and orderly development of PPP projects.This paper hopes that through the study of the relationship between government governance capacity and total investment of PPP projects,it can provide some possible reference suggestions for the government to carry out PPP projects,to a certain extent,it can promote the healthy development of China's PPP projects,and ultimately enhance the total investment of China's PPP projects.The research contents of this paper are divided into five parts.In the first part,this paper firstly elaborates the background of the topic selection and the significance of the research on the government governance ability to the total investment of PPP projects,and defines the related concepts of the paper.Based on reviewing and combing the relevant literature of domestic and foreign scholars on the research of the government governance ability and the total investment of PPP projects,this paper studies the relationship between,the government governance ability and the total investment of PPP projects.The framework is illustrated,pointing out the deficiencies and possible innovations.The second part elaborates the theoretical basis of the paper,including public goods theory,principal-agent theory and government governance theory.The third part,on the basis of the previous relevant theories,studies and analyses the mechanism of the influence of government governance capacity on the total investment of PPP projects,and makes regional analysis,and puts forward the basic assumptions of this paper.In the fourth part,this paper uses the panel data of 30 provinces and cities from 2008 to 2014.Firstly,we construct a panel Probit model with government governance ability as explanatory variable,economic fundamentals and population factors as control variables to test the influence of government governance ability on the willingness of social capital to participate in PPP project investment,and get government governance.Rational ability has a strong positive effect on the willingness of social capital to participate in PPP project investment.That is,the higher the government governance ability,the higher the probability of social capital to participate in PPP project investment.Then,on the basis of this conclusion,this paper constructs a panel regression model with government governance capacity as explanatory variable,economic fundamentals and population factors as control variables,and quantitatively analyses the impact of government governance capacity on total investment of PPP projects.It is concluded that there is a positive correlation between government governance capacity and total investment of PPP projects.The stronger the ability of government governance,the higher the total investment of PPP projects.At the same time,based on the full sample analysis,this paper carries out regression analysis on the central,Eastern and western parts of China.The fifth part,according to the empirical results,from the perspective of government governance capacity,elaborates the corresponding policies and suggestions in view of the problems encountered in the promotion of PPP projects in China.The innovation of this paper lies in the innovation of research perspective and the innovation of research ideas.On the one hand,from the perspective of government,which is an important participant of PPP model,this paper focuses on the impact of government governance ability on the willingness of social capital to participate in PPP project investment,and then further studies the impact of government governance ability on the total amount of PPP investment,and draws relevant conclusions.On the other hand,this paper quantifies government governance capacity and uses empirical test to verify how government governance capacity affects the total investment of PPP projects.At the same time,this paper takes economic development and population factors as control variables,and tests the relationship between government governance capacity and total investment of PPP projects through empirical methods.