The Influence of Government Expenditure and Financing on Private Investment
WEI Xiang-jie1,2
1.Engineering Management School, Nanjing University, Nanjing 210008, China; 2.ZiJin College, Nanjing University of Science and Technology, Nanjing 210046, China
Abstract The paper builds a model to analyze relations between the type of government expenditure, financing and private investment, and uses data from 1995-2011 to test theoretical analysis. The results show that government public investment makes crowding-into effect on private investment; Among government current expenditure, social, cultural and educational expenditure crowd into private investment, while economic development expenditure show crowding-out effect, it is unclear that other expenditures are related to private investment; different conditions of debt financing for private investment have different effects; non-tax financing of government crowds out private investment. Therefore, government spending must be treated differently, the use of debt financing to invest should choose the right time.
2015, Vol. 32 
