Research On Impact Of Scale Of Investment On Gross Domestic Product And Industrial Structure

In this paper, we studied the impact of scale of investment on GDP and industrial structure statistically. The relation between economy and investment is so complicated that it is very difficult to analyze them theoretically, so we treat it as a dark box and demonstrate it by mathematics model and statistical chart. Our government still has a predominant role in investment. Although the proportion of state budgetary investment is declining, it is still an indicator of investment from local government. Along with the growth of state investment, the investment from local government will also increase quickly, and contribute to the growths of social investment. Investment can affect economy through demand and supply. The impact should be divided into two aspects. But it is almost impossible to analyze them separately, because they have a joint effect. So after completing the theoretical analysis, we build up models using a few important variables such as investment, consumption and GDP etc. Investment scale also has very obvious effect on industrial structure. When investment changes quickly, the change of industrial structure will accelerate correspondingly. Investment scale can affect investment structure, and investment structure can affect industrial structure. As the means to stimulate economic growth, consumption is much better than investment. Because investment may cause a series of problems that consumption will not cause.