Qingdao Fixed Assets Investment And Economic Growth In The Relationship Between The Empirical Analysis

As one of the earliest coastal cities opening up to the outside world,Qingdao's economic development has made great achievements since reform and opening up in 1978. The second half of 2008, in response to the international financial crisis caused by the U.S. subprime mortgage crisis, China has increased the intensity of macroeconomic regulation and control, the government has implemented a large,4 trillion investment plan to promote economic growth. Investment as one of the troika to promote economic growth, plays an important role in economic development in Qingdao City, but there are also some problems. Therefore, the study on the relationship between Qingdao investment, especially investment in fixed assets and economic growth is significant.This paper analyzes the effect of fixed assets investment in the economic growth from both theoretical and empirical perspectives.In theoretical part, this paper analyzes and summarizes the theory and research that are related to investment and economy growth,which can make theoretic foundations. In empirical part, the paper analyzes the gross of fixed assets investment and the structure of investment on the basis of macro statistics.The empirical analysis contains Co-integrate Regression and Granger Causality Test and Error correction model,which are used to analyze the effect of fixed assets investment in the economic growth.In this paper, empirical study found that investment in fixed assets of Qingdao and economic growth in the long-term memory in a balanced and stable relations and the Granger Causality Test shows that they have bipartite causality. At the same time, detected by the error correction model of fixed asset investment and economic growth relationship exists between the error correction, fixed assets investment on economic growth have a stronger stimulus. Finally, based on the results of empirical research articles, and investment in fixed assets of Qingdao status, to improve investment in fixed assets of Qingdao City, the policy recommendations are:(1)Maintain an appropriate scale of investment; (2)Actively expand the sources of investment, encourage private investment; (3)Optimize the investment structure, increase investment returns.