The Impact Of Different Types Of Government Investment On Private Investment

Since 2015,with the disappearance of dividends such as population and exports,China’s economic growth has been weak so the government wants to continue its large-scale government investment for the need of "maintaining growth".But the fiscal deficit is limited,so the government investment cannot be used as a sustainable economic growth momentum;and private investment without funding constraints can be used as a sustainable economic growth momentum.Therefore the government investment is to crowd in or out private investment in the end,whether China should continue to carry out large-scale government investment have become issues worthy of further exploration.This paper firstly defines the scope of government investment and private investment: the investment of state-holding economy(including state-owned economy,state-owned part of joint-venture and shareholding economy)is government investment;the investment of collective economy,individual economy and the rest of joint-venture and shareholding economy is private investment.And then combs the literature: foreign literature part,summarizes the theoretical basis and the specific transmission mechanism;domestic literature part,summarizes the empirical research from conclusion,selection of sample data,method of data processing and other aspects.In the process of reading the literature,it is found that the existing domestic literature about the impact of government investment on private investment is mainly focused on the impact of the total amount of government investment on private investment in a certain period of time,without paying attention to the fact that the impact of the different types of government investment on private investment may not be the same in different economic situations.So the paper divides government investment into two different types—infrastructure government investment and non-infrastructure government investment and then respectively discusses the impact of the two different government investment on private investment in different economic conditions(before the financial crisis,during the crisis and after the crisis)and put forward the corresponding research assumptions.And then select appropriate model,data,measurement method to test the theoretical analysis of the hypothesis,find that the empirical results are basically consistent with the proposed assumptions:The infrastructure government investment not only crowds in but crowds out the private investment and finally the crowding-in effect plays a leading role.Under three economic situations,the crowding-in effect is slightly enhancing after a significant decline.Non-infrastructure government investment not only crowds in but crowds out the private investment.Before the financial crisis and after the financial crisis,the crowding-out effect plays a leading role.But during the crisis,the crowding-in effect plays a leading role.Finally,based on the conclusions,the paper reflects on the policies adopted in our country and puts forward some policy suggestions to promote the coordinated development of private investment and government investment.