Theoretical and Empirical Analysis of 'Local governments led' investment Hindering Consumer-Based on Panel Fixed Effects Model

摘要

The perfect investment system can promote stable and sustainable development of the consumer, but China's investment system has obvious "local government-led" feature. Although to a certain extent, it can promote economic growth, but it is impeding the development of consumer reversed arrangement. Based on our 31 provincial panel data from 2008 to 2016, using a fixed effects model approach, the paper has a theoretical and empirical analysis on a "local government-led" investment system characterized by the impact on the consumer. Studies have shown that local government investment spending and consumer spending in the investigated period has a positive correlation, but as an alternative investment system variables on consumer spending, it has a significant negative effect, indicating that the "local government-led" is characterized by investment system hindered the increase in household consumption. Therefore, by improving the investment system it will help remove institutional barriers and promote the sustained and healthy development of the consumer.