Public investment and its impacts on regional economy

In recent years, China's economy grows at an astonishing rate. However, Inter-regional development is greatly uneven. The overall economic growth and regional balance issues caused concern among economists and policy maker. This paper is to present a three-recursive dynamic Chinese CGE (Computable General Equilibrium) model of the Chinese economy, and to apply it to quantitatively evaluate the impacts of public investment policies options on Chinese economic growth and the impact of regional differences, and to examine the effects of policy options on inter-industry and inter-regional transmission.