The Analysis of the Mutual Effection of Government Investment and Private Investment——Taking Shanxi Province As an Example

With the establishment and improvement of socialist market economy in China,private investment plays an important role in Chinese economy in recent years.The development of private investment in Shanxi is far less than that of developed regions.There is the analysis of mutual interaction between government investment and private investment by the co-integration method in this paper.The results show that: there is not exist crowding-out effect between government investment and private investment in Shanxi.Therefore,government must take effective measures to encourage private investment in order to realize transformation and spanning development in Shanxi.