Government Investment and High-Quality Economic Development - Measurement and Analysis Based on Input-Output Method

Analysis of how government investment promotes economic development and employment is important for improving government's decision-making and promoting high-quality economic development in western China. In this paper, the authors take Xinjiang as an example to conduct such an analysis. Firstly, based on the competitive input-output table of Xinjiang, the non-competitive input-output tables of 2007, 2012 and 2015 are compiled in this paper. Secondly, the contribution of Xinjiang government investment, especially the major government investment projects, to the value-added of Xinjiang, other provinces and cities in China and abroad are calculated. Thirdly, this paper uses the non-competitive input-output table to compile the sectoral employment vector, and uses the input-occupancy-output technique to measure how government investment promotes employment. The results show that Xinjiang government investment contributes the most to the value-added of Xinjiang and other provinces and cities, but less to foreign countries; the government investment create the most job opportunities in projects including transportation projects and livelihood projects etc.