Research on the Determinants of Government Investment Effect

Abstract

Abstract Government investment plays an important role in promoting and guiding the economic and social development in China. Xinjiang is the core province of the Belt and Road and its economic growth is mainly driven by investment. This paper decomposes the determinants of government investment effect into economic structure change, technological change and investment structure change, using the non-competitive input-output table of Xinjiang province in 2007, 2012 and 2015 and structural decomposition analyses. The results show that, the government investment effect in Xinjiang shows a slight decline trend. During the period, the change of economic structure and investment structure have the negative impact on government investment effect, while the change of technology has the positive impact on government investment effect. In addition, these impacts have strong sectoral heterogeneity.