Study Of The Relationship Between Our Investment And Economic Growth

This article deals with relations between investment and economic growth in China. It is composed of five chapters. In chapter one, some fundamental concepts are defined. The author sets up a model which is used to describe the relations of the following variables: the economic growth, the rate of investment, the adding rate of investment. And the author also uses the 2-Stage Least Squares to analyze the demand effect and the supply effect of the economic growth in China. In the other chapters, through analyzing the relations of the economic growth between the following factors: the variance of investment, the amount of investment, the structure of investment in our country, the author comes to a series of conclusions. The variance of our economic growth is caused by the variance of investment. And the author examines the phenomena and the causes of investment expansion and contraction as well as their influence upon economic growth. By reviewing the structure of investment in our countiy, the conclusion is drawn: the variance of the structure of investment in the past years don't promote the growth of our counliy~s economy, but sometimes hinders the growth of economy. Besides, the author discusses the growth effects of the agglomeration of investment in a given region. Based on these conclusions, the author analyzes the present situation of our countmy and gives some useful suggestion.