Studies On The Effects Of Regional Investment On Economic Growth Difference In China

In recent years, China’s macroeconomic situation and the development trend have occurred significant changes. There are three main judgments. At first, China has entered a period of economic growth shift, the throes of economic restructuring and the digestion of previous simulative policies. Secondly, China’s economy has entered a new normal. The last, economic growth in China is the "L" rather than "U" or "V" type in the future. Because China’s economy is facing severe downward pressure, "Supply side" reform has become an important perspective to study the changes of China’s economic policies at present. Investment for industrial restructuring has an important incremental effect, that the current investment structure determines the future of the industrial structure, the role of direct investment in future supplies capacity to affect the quality of economic growth and long-term growth rate. Therefore, the investment is closely related with the "supply side" of reform. The inherent requirement of "supply side" to reform is studying clearly economic growth effect of investment especially in the key period of the current.Investment as one of the important elements of economic output, plays an important role in the formation of capital and the increase of capital stock. It is an important driving force for economic growth. In the modern economic cycle theory, the investment is the leading indicator of economic output. Changes in investment lead to changes in output, and the volatility of investment is significantly outweighs clearly the magnitude of the output fluctuations. In terms of expenditure approach GDP elements of view, the consumption compared to net exports and investment, time-varying volatility is weak, investment can be used as an important early warning indicator of China’s economic development trend change. At the same time, investment as one of the variables of economic output has the function of accelerating economic growth. In the early period of China’s reform and opening up, the eastern coastal area has attracted a large number of foreign direct investment, which has effectively promoted the development of the eastern coastal areas.Accelerating the development of economy further promote the expansion of investment scale, the more economically developed areas have a large scale of investment, thus it is more conducive to economic development of the economically developed areas. It makes that the gap between China’s regional economies continue to expand. At different geographical scales, the development of regional economy in our country has formed the development situation of "core-periphery". In general, investment structure, investment efficiency and investment environment have important influence on regional economic growth.In the current economic development situation. How to improve the investment-driven research on the effect of China’s economic growth? The research on the relationship between investment and economic growth in various provinces of China from the regional perspective is of great practical significance. On the basis of drawing lessons from the domestic and foreign theories and empirical research, the main research contents include analyzing the similarities and differences between government public investment and private investment, as well as the local government investment behavior under the fiscal decentralization. The paper estimates and analyzes the regional differences of the provincial fixed assets investment scale and growth, the efficiency of investment. By investment is defined as the level of economic effects and effects of economic growth, drawing on endogenous growth theory and the neoclassic economic theory of convergence established empirical test. Combined with China’s current private investment driving slow, economic sentiment down, funds "off the real to the imaginary" and part of the region severe adjustment problems, and improve investment efficiency and promote policy recommendations for sustainable development of regional economy.This paper is divided into six chapters. The first chapter is the introduction. This part mainly includes the research background, the significance of the topic, literature review, the main research content and research methods of this paper, and it gives the structure of this paper and the main points of innovation.The second chapter is the definition of the concept and basic theory, including thesis concerns the object of investment, return on capital, economic growth and the definition of the basic concept of fiscal decentralization. This paper gives a brief introduction to the theory of regional economic disparities, economic growth and regional economic growth in a brief overview. And it focuses on the similarities and differences between public investment and private investment, the performance and causes of the return on capital, and the investment behavior of local government under the fiscal decentralization.The third chapter is the analysis of inter-provincial differences in fixed asset investment. In this chapter, the fixed assets investment level of our country is an important research object. First of all, the characteristics of the evolution of the fixed assets investment in China are analyzed, including fixed assets investment scale temporal trends change, the time fixed asset investment growth trend changes, structural changes in funding sources of investment in fixed assets, the nature of the project and the nature of investment in fixed assets of industrial structure changes. The study found significant stage characteristics of China’s fixed asset investment, the level of scale, growth rate, the contribution rate of investment and other indicators are clear inter-provincial differences. Secondly, from the provincial level detailed analysis of differences in the performance of China’s fixed asset investment, The discovery of high investment growth in eastern coastal provinces showed the western region, northeast China, central and western regions, the inter-provincial investment growth is greatly affected by the national policy of regional economic development.The fourth chapter is the investment efficiency of provincial differences and spatial characteristics of dependency. This chapter gives China’s investment efficiency of provincial comparison and analysis. In this chapter, we use the investment contribution rate and the incremental capital output ratio(ICOR) two indicators to measure the efficiency of China’s inter-provincial investment and analyze differences between the vertical and horizontal and dynamic changes. Obvious regional difference and spatial dependence in the evolution of China’s inter-provincial investment efficiency are found. Current investment indicators in Northeast China "three high" indicates that the Northeast Economic growth was mainly driven by investment, low growth quality and poor sustainability of growth. Midwest investment efficiency can not be optimistic, investment efficiency economically developed eastern provinces is relatively stable, and there was no significant decline. Secondly, I use the exploratory spatial data analysis method to analyze the spatial dependence of the inter-provincial investment efficiency in China. It is found that the inter-provincial investment efficiency in China has a significant positive correlation with the spatial distribution. It shows northeast and south western provinces of high investment contribution rate mutual agglomeration and the eastern coastal provinces of low investment contribution rate of each other gathering.The fifth chapter is the research on the effect of regional economic growth. This chapter firstly study investment economic growth effect of economic logic, raise the level of economic effect of investment and economic growth effect, take into account the economic effects of different types of investments and their inherent relationship and analyze the effect of other economic growth factors. Secondly, the endogenous economic growth model and the economic convergence model are the theoretical origin, and the empirical model is established to study the two economic effects of investment. Again, in view of inter-provincial sample data, according to the quantitative analysis methods of classical panel data model and spatial panel data model analysis method and empirical analysis, we found our inter-provincial investment has a significant level of economic effects, but economic growth effect does not exist. After considering the impact of space spillover effect, because of the low investment efficiency, the inter-provincial investment efficiency has a negative impact on the economic growth rate.The last chapter is the sixth chapter, including the conclusion and the policy suggestion. Based on summarizing the research of this paper and obtaining important conclusions. Combined with the actual situation of China’s inter-provincial investment and economic development, and I put forward to stimulate private investment in fixed assets, accelerate the transformation of the government to actively promote supply-side reform, to guide funds " to take off the virtual reality" and suggestions of the efficiency of investment improved.