Research On The Relationship Of China Investment Growth And Credit Allocation

High investment is the important characteristics of Chinese economic development and high credit supported by high savings is along with the high investment.This article selects the fixed assets investment,bank credit amount as the measurement index and researchs the relationship between investment and credit by theoretical and empirical analysis,which is helpful to understand China’s special economic phenomenon and economic growth pattern and contribute to the study of interactive relationship between physical and financial variables.In the theoretical analysis,the paper analyzes the Western schools’s theory on investment and credit, summarizes the domestic scholar’s viewpoint and lays the theoretical foundation of empirical analysis.In the empirical analysis,this article firstly carries on the macroeconomic analysis.Through the1994-2011national macro investment and bank credit data, descriptive analysis and Granger causality test,the paper obtains the gross feature of investment and credit and proves that China’s credit is the Granger reason and the existing credit expansion stimulates the rapid growth of investment. Secondly, this paper carries on the provincial panel data analysis.To refine credit’s impact on investment,the article selects credit growth rate,conomic growth rate, price index,government intervention,market index as independent variables and studies the influence of credit on investment in east center-west region and different investment credit similarity provinces.Model results show that credit investment mechanism is not the same in different regions and different levels of credit and investment province,which has typical regional difference.