Study on the Effect of Public Investment on Private Investment in China and Their Relationship
Rubao Huang
Abstract
Rubao Huang
Abstract
Public investment may have the crowd in or crowd out effect on private investment.In China,the public investment has the effect of crowd out on the private investment according to the analysis of empirical model and historical data.What's more,based on the comparative analysis of public investment around the world,we can make the confirmation that the effect of public investment over private investment is crowd out.But the public investment ratio is on the decline,which conforms to the general development law of public investment of other countries.
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Public investment may have the crowd in or crowd out effect on private investment.In China,the public investment has the effect of crowd out on the private investment according to the analysis of empirical model and historical data.What's more,based on the comparative analysis of public investment around the world,we can make the confirmation that the effect of public investment over private investment is crowd out.But the public investment ratio is on the decline,which conforms to the general development law of public investment of other countries.
Key concepts: Open-ended investment company, Investment (military), Umbrella fund, Gross private domestic investment, Public investment, Return on investment, China, Crowding out