The effects of public investment on private investment
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| Title | The effects of public investment on private investment
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| Author | Zhang Yong；Gu Mingming；Wang Xi |
| Organization | Xiamen University; Tsinghua University |
| Email | phd@xmu.edu.cn,cooking1983@163.com,miracle_wx@yahoo.com.cn |
| Key Words | public investment；private investment；capital cost；desired investment |
| Abstract | Public investment in emerging market countries is considered to expand domestic demand. Furthermore, it is an important measure to promote private investment and economic growth. However, these researches will be invalid when applied to Chinese situation because of Chinese special investment conditions such as relatively fixed interest rate, investment outside of the budget and the investment sponsored by the state-owned enterprises. Based on these corrections and improvement on the traditional method, the outcome shows that the effect of public investment on private investment is significantly negative. As a result, we must revise our public investment policies. |
| Serial Number | wp11 |
| Time | 2010-10-24 |
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