The Influence Of Fixed Assets Investment In Non-stated Owned Economy To Economic Growth Of Anhui Province

Since the reform and opening, economy of China and Anhui Province has been in a high-speed operation, the growth rate of GDP remained at around 10% annually. The economy and the life of people has been improved increasingly. The per capita GDP of Anhui Province reached 16,409 yuan in 2009. With the development of economy, private economy has also obtained rapidly development and gained notable achievement. Private economy overcome difficulties and build capacity for sustained development wihle achieving growth objectives in response to challenges. The total size of the private economy achieve new growth in response to challenges. Increment of registrations, registered capital continue to create high scale. At the end of 2008, the number of private enterprises of Anhui Province reached 9925, increased by nearly three times compared with 2000.With economic development, investment in fixed assets of Anhui's non-stated owned economy has increased significantly. From 1983 to 2008, it is negative growth only in three years-1989,1991 and 1999. The growth is positive growth in all of the the rest of years. Especially after 2000, the non-stated owned economy's fixed assets investment in Anhui Province has shown sustained strong growth. The growth rate is 7.39% in 2000, which is 19.48% in 2001. The growth rate are all higher than 30% from 2002 to 2008. It is reached 49.55% at the beginning of Eleventh Five-Year period, and get to a historical peak of 49.91 percent in 2008. At the same time, the GDP of Anhui Province has made great progress, since 1983, which maintained a growing trend. Starting from the Eleventh Five-Year period, economic growth get into a high-speed growth, the growth rates is 16.0%,19.3% and 22.6% respectively in2006,2007,2008.Has the fixed assets investment in non-stated owned economy in Anhui Province made a contribution to economic growth? If so, what channels investment in fixed assets go through to boost economic growth? And what factors influence the fixed assets investment in non-stated owned economy? This paper will make use of an econometric model to test these issues. Based on the econometric model, we proposed policies and measures of investment in fixed assets to promote non-stated owned economy in Anhui Province.The main context and conclusions are as follows: Chapter one defined the concept associated with fixed assets investment in non-stated owned economy; reviewed the literatures of relationship between fixed assets investment in non-stated owned economy and economic growth, how fixed asset investment affect economic growth and the impact factors of fixed assets investment in non-stated owned economy; and introduced the theory of investment and economic growth, the theory of regional economic differences, analysed research status of domestic and foreign scholars on the relationship between investment and economic growth, and factors affecting fixed assets investment in non-stated owned economy status. Chapter one is the theoretical basis of the full thesis.In Chapter II, development stage of AnHui's fixed assets investment in non-stated owned economy and economic growth, were analyzed, indicating there is consistency between fixed-asset investment and economic growth. The results showed that:Judging from the general growth trend, the two remained the same, namely increasing fixed assets investment in non-stated owned economy, GDP sustained upward trend. But volatility of fixed asset investment in Anhui province is than strong than that of GDP. Which fully explains the instability of fixed assets investment in non-stated owned economy and stability of economic growth.Relationship between economic growth and the fixed assets investment in non-stated owned economy of Anhui Province was empirical tested in Chapter III. cointegration test and Granger causality test show that two time-series data are cointegration, and there is causality between the two data. I f the fixed assets investment in non-stated owned economy increases by 1%, Anhui's GDP will increase 0.1202 percent.In Chapter IV, I analyzed how fixed assets investment in non-stated owned economy promote economic growth in Anhui Province based on the third chapter. Which includes:increasing the economy's capital supply, promote the optimization and upgrading of industrial structure, accelerate the restructuring of ownership and improved a balanced development of economy in the province, reduce the cost of economic operation.I used lagged variable model to find the factors affecting fixed assets investment in non-stated owned economy in Anhui in Chapter V. The results showed that, GDP and the number of non-stated owned enterprises in Anhui Province and interest rates are major factors affecting fixed assets investment in non-stated owned economy of Anhui Province. Of course, due to multicollinearity, the model excludes government spending. In fact, government spending is also an important factor that affect fixed assets investment in non-stated owned economy of Anhui Province. If GDP increased by 1 million, fixed assets investment in non-stated owned economy will increase 0.199 million yuan; and the total number of non-stated owned enterprises increases 0.443 million yuan will rise in the fixed assets investment in non-stated owned economy. However, interest rates rise 1 percent has caused the increase in fixed assets investment in non-stated owned economy, which does not match the traditional economic theory that there is a negative correlation between interest rate and investment.The policy recommendations of fixed assets investment in non-stated owned economy of Anhui province was made in Chapter VI. They include:a modest increase in government spending, liberalization of market access, development of non-stated owned enterprises, improve the non-stated owned enterprise system, a sound governance structure, strengthen human resource management of the non-stated owned enterprise.Chapter VII is the main conclusions of the full text.