This report uses the time series data of 70 years of development of public cultural institutions since the founding of New China. Based on the description analysis，10 different time series elastic variables are used to construct a long-term cointegration model and a short-term correction mode. This long-term cointegration model shows that there is a clear endogenous codependence among the investment of cultural undertakings，the accumulation of capital of public cultural institutions，and the growth of both public cultural consumption and economic output. Furthermore，the accumulation of public cultural capital has obvious output growth effect on economic output. The short-term model shows that there is insufficient explanatory reasons of the lack of what cultural investment，capital accumulation of public cultural institutions and accumulation of public cultural consumption contributed to economic growth and there is room for correction. The present report argues that，from a policy perspective，the degree of investment guarantee and the attention paid to the development of public cultural institutions are closely related to economic output. Moreover，the chronic underinvestment of public cultural undertakings and the lag in investment growth are caused by “two deficiencies”，namely，insufficient financial investment from the central government and lack of attention paid by local authorities on investment. Therefore，the present report puts forward the following suggestions：Firstly，to improve the mechanism of investment to increase the financial investment in public cultural undertakings by the central government so that the enthusiasm of local financial investment can be stimulated. Secondly，the development of public cultural institutions should uphold its value goal：improving both the public welfare and excellent cultural heritage，so those institutions cannot be over-transformed. Thirdly，the development of public cultural institutions needs to gain more support in policy.