The Influnce Of Substitue Of International Investment To China's High Investment Rate

High investment rate is the source of China's rapid economic growth. But opposite to traditional theory, China's high investment rate is related with low-inflation and high current account surplus on macroeconomic and high rate return of capital in the microeconomic level. The economic miracle has aroused academic and policy dimensions of the great debate. Make clear of internal mechanism of China's high investment form, exploration reasons of China's high investment, high-efficiency, to determine whether China's high investment rate can be sustained, to what extent can continue is of great significance to maintain macroeconomic stability growth.This article holds the idea that substitute of international investment is an important reason to China's high investment, high efficiency. In the 80 years of technology and institution innovation background, China's economy fully into the global economy, become an important undertaker of the world's industrial restructuring and chain of industrial re-division, China's investment in the manufacturing sector is actually replace developed country's invest on related industries, and foreign direct investment in China is the main incentives to substitute of international investment.This paper analyzes the internal mechanism of substitute of international investment in China, holds the idea that on one hand, substitute of international investment improved export competitiveness, optimizing the export structure and form of deferred investment in the manufacturing sector; one the other hand , substitute of international investment form the urban population concentration, lead to infrastructure investment needs. Substitute of international investment through export and urbanization have great impact on China's high investment rate. Through recursive system model to test this paper test the impact of substitute of international investment through structure of export trade and urbanization to high investment rate. Positive test that Substitute of international investment through the structure of export trade and urbanization have impact on China's high investment rate, substitute of international investment is the cause of China's high investment rate.China's high investment rate is a stage phenomenon of substitute of international investment, with the decline rate of substitute of international investment, structure of international investment is changing, and pressure on export is increasing, China's investment will mainly depend on endogenous demand, high investment will not last long. As a result, regulation of export-oriented policies, changes income distribution policy and expanding domestic demand, increase investment in research and come out industrial upgrading, will become an important condition to achieve macroeconomic stability growth.