Research on Economic Effect of Public Investment During the Transformation Period in China

In a two- sector endogenous growth model,we classify public capital investment according to functions,build the vector error correction model by use of Chinese annual data from 1953 to 2013,analyze the mechanics of government public investment on economic growth,and empirically test the effects of public physical capital investment,public human capital investment,science and technology investment on China' s macro economy. The empirical tests show that public physical capital investment has a significant effect on long- run and short- run economic growth,public human capital investment and science and technology investment have positive time- lag effect on long- run economic growth,otherwise,having negative effect on economic growth in short term.