The Analyse Of Regional Disparity About The Effect Of Fixed Assets Investmen On Regional Economy In China

As the development of China's reform and openning up to the outside world, China's economy grows steadly. However,regional economic growth becomes uneven in development due to some reasons.Since China's economic growth mainly depends on the injection increase of production factors, fix assets investment becomes essencially important in large numbers of production factors .Due to the disparate economic growth, fixed assets investment also becomes unbalanced .60% of China's fixed assets investment and economic growth occur in the eastern part. And the devotion index and efficiency index of fixed assets investment in the east are also far better than that of the central and western areas of the country.Therefore, it's of great theoretical and practical importance to discuss the regional devotion of fixed assets investment to the economic growth for the purpose of increasing the fixed assets investment efficiency of the central and western areas, of shortening the distance between the eastern and the central and western areas'economy, and of promoting the harmonious regional economic development.After an extensive reading of Chinese and English documents, this essay makes an effort to discuss the allocation of China's fixed assets in the three regions and its influence over regional economic growth in a way of integrating theory with practice through an overall analysis of historical data of fixed assets investment and regional economic growth.This essay tries to analyze from the following aspects. First, after a summary of the relative foreign and domestic theories of economic growth, regional economic disparity, and the relationship between regional investment and economic growth, it analyzes the current unbalance development of China's economic growth and fixed assets investment. Next, it proves the interrelations between China's fixed assets investment and economic growth through Cointegrate Regression and Granger Causality Test. Third, it analyzes the benefits of investment for regional economic growth with the fixed assets investment correlative index. Then, it uses examples to analyze the investment disparity among and in the three regions mentioned above with data from 1988 to 2005 and indexes of Weighted Coefficient of Variation,Gini index and Theil index. Finally, through above analysis, it comes to conclusions that: 1. The eastern fixed assets investment efficiency is higher than that of the central and western areas. 2. China's regional disparity of fixed assets investment has great influence on regional economic growth mainly due to the difference among the three regions, not the provinces in them. 3. The eastern fixed assets investment has greater benefits to the regional economic growth than that of the central and western part. Moreover, this essay puts forward some suggestions for policy making.This essay tries to analyze problems from a relatively new point of view by adopting Gini Index and Theil Index, which are usually used in the study of income distribution, in the analysis of the devotion of regional disparity of fixed assets investment to regional economic growth. It focuses on the comparative study of the disparity among and in the three regions. Furthermore, it also explores some suggestions to solve the problem.