Empirical Research On The Relationship Between The Investment Structures, Efficiency In Fixed Assets Investment And The Economic Growth In China After WTO Entry

As the financial crisis triggered by U.S. subprime mortgage crisis spread over the real economy, the global economy was badly hit in 2008. The Chinese economy was confronted with great challenges due to the export-oriented strategy. How to alleviate the extensive alliance on external demand and expand domestic demand is the key to achieve a virtuous economic growth. Fixed asset investment is an efficient tool for macro economy regulation. In this paper, we focus on the structure and efficiency of fixed asset investment in China.In Chapter 1, the level of fixed asset investment in China is studied from the view of global economy. It shows in the panel data model that China's economic growth depends heavily on the growth of fixed asset investment, which is similar with the developed countries such as The U.S. However, the marginal contribution to economic growth is far behind the developed countries such as The U.S. The result of clustering analysis shows that the level of fixed asset investment in China has been in the same rank to the developing and backward countries between 2002 and 2007, which indicates that the fixed asset investment in China does not work efficiently.In Chapter 2, two groups of indicators, investment contribution and investment efficiency, are selected to investigate the relationship between fixed asset investment and economic growth. The same conclusion of low efficiency in fix asset investment is validated again from a regression mode that quantizes the marginal contribution of fix asset investment to economic growth. Chinese economy is a kind of extensive operation with low efficiency but high accumulation and investment, which results in the waste of social resources while obtains limited promotion on the economic growth. This confirms that the efficiency of fix asset investment has to be improved so as to achieve the sustainable economic growth.It has been verified in theoretical research that the qualified investment structure will optimize the resource allocation, and then improve the investment efficiency. In Chapter 3, we investigate the structure in China's fixed asset investment from five aspects, i.e. industrial structure, district structure, urban and rural structure, economic type structure, funding sources structure. Several panel data models are established to make further quantitative analysis for the influences of the investment structure on economic growth. As a result, we have an explicit understanding of the characteristics about the investment structure in China's fix asset investment, and also find out the unreasonable factors. In Chapter 4, some suggestions are proposed on optimizing the structure in fixed asset investment from the view of macro regulation. As for the industry structure, the government should increase the total investment in the first industry while optimizing the internal investment structure in the second industry and moderately increasing the investment in the third industry; For the district structure, the investment in the western region should be enhanced while the investment in the middle region increased appropriately and the investment in the eastern region maintained; To the urban and rural structure, the rural fixed asset investment should be reasonably enlarged, and the efficiency in urban investment should be improved. For the economic type structure, the efficiency of fixed asset investment should be improved in public-owned economy while the investment in non-public sector of economy should be increased; finally, the reform of the financial system should be accelerated to improve the investment environment in order to optimize the funding sources structure.Finally we conclude our work and point out the limitations of the research.