Jiangsu Province Investment Changes On Economic Growth Empirical Analysis

Investment and GDP is an old topic in the field of economics. Although the topic is old, it's the source of vitality because of new explanations. The development of economic changes the mode of economic growth. so there is new requirement for the form and content of investment. For these years, with the development of the information and electronic, the economic growth of some area displays some characteristic which can not be explained, in the light of which, a few of new explanations exist continuously, or the theories which were not attached importance are appreciated now. On the new condition, how to make acquaintance of the position of investment and the relationship with the economic growth? It's a new course of investment theory, but there's few of research fruit abut it, so we can say it's an academic field that need to be developed.From the short period, investment is purchase,demand and economic growth is supply,sale. Abate purchase, abate demand will bate supply and economic growth. If we add purchase and properly, amplify demand, so that we can incite production, add supply, accelerate economic growth.The thesis use data from the jiangsu almanac, and we use GDP stands for economic growth, fix investment stands for investment.. We use Eviews to analyse the relationship between economic growth and investment. We use Unit Root,Cointegration,Error Correction Model,Granger Model,Vector Autoregression Model,Impulse Response Function,Multiply Model. We analyse with qualitative theory and analyse the problem of investment quantitative.We use Eviews and economic theory to analyse, we know that investment is an important factor which affect economic growth. Investment develops important action in pulling economics. So, we can develop the efficiency of investment, optimization the instruction of investment, in order to accelerate the economic growth.The main content of the thesis are as follows: the first passage introduce the research background, the research background home and abroad and the importance of investment. The second passage introduce the theory analyse about investment and economic growth. The third passage introduce the professional knowledge: Unit Root,Cointegration,Error Correction Model,Granger Model,Vector Autoregression Model,Impulse Response Function,Multiply Model. The forth passage analyse with an example ofjiangsu province, and make use of economic theory in the practice. Firstly, we delete the influence of price, and then we use unit root, we know that the series is smooth. With the knowledge of Cointegration, we know that there is Cointegration relationship between economic growth and investment. The long term balance relationship between investment and economic is: LGDP_t=0.662022LFI_t+3.155905We can see from the equation that,the GDP's elasticity about investment is 0.66: if investment adds 1%,GDP adds 0.66%. The short term Error Correction Model is:â–½LGDP_t=0.059658+0.259508^*â–½LFI_t-0.075405^* ECM_t-1We can see that, if the short time investment adds 1%, GDP adds 0.2595%, investment adds 1, GDP adds 0.2595; The coefficient of Error Correction ECM reflects adjustment dynamics to bias from long term balance., the elasticity is 0.075%, we can make sure that investment and GDP are Granger mutually with the Granger Model; explore the internal relationship between investment and GDP, the fluctuate direction and cycle are accord between investment growth rate and GDP growth rate. The investment fluctuate brings about the economic fluctuate ofjiangsu province. At the end of the forth passage, we analyse the relationship between main structure of investment,production structure of investment and economic growth. The fifth passage advances some political suggestions in order to develop jiangsu's economics.