Abstract:
This paper theoretically explains how infrastructure investment affects private investment, and conducts empirical tests using China’s provincial-level panel data. In the empirical analysis, we find that: on average, China’s infrastructure investment is not oversupplied or used inefficiently. Infrastructure investment has rather strong crowding-in effect on the private investment, and the improvement of market environment and openness can further strengthen this positive effect. If market environment is not friendly to investment and openness level is low enough, the crowding in of private investment can be overlooked. Regionally, the crowding-in effect in eastern areas is stronger than that in central and western areas. Especially in western areas, infrastructure investment even crowd out private investment. Overall, the positive impact of market environment and openness on the marginal utility of infrastructure increases from the east to the west. Based on theoretical and empirical researches, this paper contributes some important policy suggestions.
唐东波. 挤入还是挤出:中国基础设施投资对私人投资的影响研究[J]. 金融研究, 2015, 422(8): 31-45.
TANG Dongbo. Crowding in or Crowding out: A Study on the Impact of Infrastructure Investment on Private Investment in China. Journal of Financial Research, 2015, 422(8): 31-45.
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