The Analysis to Crowding-out Effects of Government Expenditure on Private Investment in China.

At present, a conspicuous contradiction of economy in China is that the investment is simply high, but the consumption is low. The paper anlyses the crowding-out effect on private investment in terms of structure of government expenditure. Partitioning government expenditure into consumption expenditure and investment expenditure, we conclude that government consumption has no effect on private investment and government investment crowds in private investment entirely whether in a short time or not. According to the analysis result, combined with the change characters for a long time of government sectors and non-government sectors, this paper puts forward some advices on improving the investment proportion to solve the structural problem that the consumption is low. [ABSTRACT FROM AUTHOR]