Investment Policy Choice Of Jilin Province

Investment is am essential element of the national economy system and an important strength for the increase of the national economy. It has a positive connection with the national economy. Their connection is especially close in the time of increasing economy development. Firstly, this article defines the basic concept of investment, investment rate, investment improving rate, economy increase, economy development, investment multiplier, investment overheat and investment inadequacy, and gives a detailed introduction to the calculation of investment rate, investment improving rate, proving through a large number of data that the contribution rate of investment is greater than that of consumption and net export. It also argues that investment is closely related to economy increase, that the increase of investment rate agrees with the way of economy development in a certain period of time, which is in accordance with economy development rules, and that high investment rate is an inevitable phenomenon related to the increasing economy development, using Keynes'theory of investment multiplier and the development experience of many countries like Japan, Singapore and some developed provinces of China like Guangdong, Shanghai, Jiangsu, Zhejiang and so on. However, every coin has two sides. While excessive investment rate can bring fast economy development, it can also have some negative effect on economy, decreasing the quality and efficiency of economy increase. Therefore, starting with the historical data since 1980, this article makes a detailed analysis of the change in investment rate in different years and gets an empirical judgment criterion: when the investment rate is continuously high accompanied with a high consumption increasing rate, the macro-economy is very likely in an overheated state, and the conclusion is: China's "high investment rate"in the present situation should be above 40%. This article explains that the government's decision of strengthening macro regulation and control, containing investment overheatedness is reasonable, on the basis of the strong investment increasing tendency of some industry, over-expansion of credit scale, over-rising in general price of productive materials in the circulation link, overtaking of large area under cultivation, the conflicts in coal, electricity, oil and transportation, and the sharp decrease in grain yield and so on. And at the same time, it also argues through large numbers of data that the investment of Jilin Province is not overheated and to some extent, inadequate, on the basis that the investment rate of Jilin Province is much lower than the national level, that the consuming level is relatively low, that the loan increase is lower than economy increase and the national loan increasing rate, that the development and utilization of land is much lower than the national index and that we are getting a good harvest of grain, etc. According to the truth of inadequate investment, this article points out that Jilin Province should make a proper investment policy choice, that is, to change the present situation of relatively slow economy development and realize the set objective of transequatorial economy development, Jilin Province has to improve investment. This article argues the indispensability of improving investment in Jilin Province from the fact that fast improvement of investment in a certain period of time is the essential motivation to realize economic takeoff, that the heavy industrialization of Jilin Province is crying for adjusting and reform, and that promoting the urbanization process is the main motivation to increase economy development. And it explains that improving investment in Jilin Province won't conflict with the central macro regulation and control policy, but it is the practical need to implement scientific development theory, improve the harmonious development of regional economy, and narrow the gap between Jilin Province and developed regions. Then, the article discusses the feasibility of improving investment in Jilin Province from the viewpoint of the improving function of system factor on economy increase, the favorable opportunity brought by the nation's macro regulation and control policy, the policy and capital support from the revitalization strategy of Northeast Traditional Industrial Base, the attraction to the strategic investor of the national enterprise reform and the close cooperation with the national development bank. Finally, the article points out the functions the governments of different...