By Zhang Chenghui　

Date: 2002/07/30

Abstract:　

The paper summarizes the basic situation of Japanese public investment since the collapse of the bubble economy and points out that some conditions are required for public investment to stimulate economic growth. According to the paper, a certain size of public investment is necessary when a country is not well established in terms of infrastructure and potential production capability exceeds the actual growth rate. However, public investment can not solve system and structural problems, and the form and modality of managing public investment require innovation.