Difficulties in Realizing Economic Structure Transition in China——Based on the Relation of Public Investment,Economic Growth and Transtion of Economic Structure

Abstract

Positive financial policy always goes along with unbalanced economic structure in China.It is easy to follow the simple logic and make the judgment that large-scale public investment construction may aggravate structural imbalance and threaten sustainable economic growth while maintaining rapid economic growth.Based on research of Chinese practice,intrinsic investment impulsion of local authority indeed strengthens the imbalance of economic structure under specific decentralization system of China.But as a policy tool,public investment doesn't have positive connection with the transition of economic structure.However,under the control of finance decentralization and other institutional factors,excessive growth of public investment and economic aggregate has remarkable inhibitory effect on transition of economic structure.Therefore,moderate economic growth and investment increase will benefit the transition of economic structure.