An Empirical Study Of Investment And Economic Growth In China

As the first important impetus of one nation's economic growth, investment acts as the forerunner in economic development. So either economists or policymakers in government always attach importance in this field, so as every country, every region, and every enterprise. Since 1996, when it properly gains so-called soft-landing gently, our national economy has been growing very well in general. But in the other hand, we can't be blind to the fact of over-supplied commodities, more and more lay-offs, unbalanced social distribution system and so-called "three peasants problem". All these issues have already become the main obstacle in economic system reform in advance and in regular operation of market mechanism. The central government has already adopted several policies and plans to solve these problems. We can't settle all these difficulties just relying on investment, because which come from paying more attention to investment, to accumulation, and ignoring consuming. Nevertheless, the role of investment can't be substituted by consumption. Promoting consumption doesn't mean letting investment alone. If only we attach more importance to investment structure and investment scale, investment can play a very good role to pushing economy forward, and to promoting economy developing in good cycle in the condition of investment quantity in proper control. In this case, I choose the regression research about the relation between Chinese investment and economical growth as my thesis for the degree of master.There are four chapters in this thesis.Chapter one is the theory foundation of this thesis. According to the research of investment, economical growth and their relationship domestically and abroad, I get the result that investment is the key factor of economical growth.Chapter two is the regression analysis. I get the result that Chinese economical growth depends on the growth of investment from the research of the data before. Chapter three is the structure analysis of investment. Investment is divided into two parts---government investment and non-government investment. The two parts are compared with similar analysis methods to get the result. After the research of the former chapters, Chapter four analysis the problems in the course of domestic economical growth and give some advise for the government.