The Empirical Study Of Relationship Between Domestic And Foreign Investment And Economic Growth In Inner Mongolia

Investment is an important driving force for promoting economic growth, either pull caused by the increase of the total national demand of production and services, commodities and thus the demand for consumer information, and can also injected a new factor of production in the production process to the community, to increase capital accumulation, thereby increasing the supply of means of production, these two methods will be driven to some extent, a country or region’s economic growth. Inner Mongolia Autonomous Region, since the implementation of the reform and opening up and the western development strategy, its economy high speed development, and continuously improve the per capita income, the comprehensive economic strength has been steadily rising, an increasingly important role in the development of China’s economic operation. Investment to play a primary contribution to the role of this pattern of development of the Inner Mongolia Autonomous Region, there are also underdeveloped infrastructure, irrational industrial structure, investment structure to be optimized, the problem of unbalanced regional development, etc., making the investment and economic growth in Inner Mongolia the relationship between the research has important practical significance.The relationship between investment and economic growth are the social variety of factors influence investment by geographical area is divided into domestic investment and foreign investment to be the difference between the study is very necessary in order to protect the government effectively to the formulation of macroeconomic policy, optimize the structure of domestic fixed asset investment, better the use of international investment, more direct and effective promotion of economic growth in the Inner Mongolia Autonomous Region.In this paper1986-2009Inner Mongolia Autonomous Region, the economic data collection and collation, on the basis of analysis of the Inner Mongolia Autonomous Region economic growth and investment status, further select the VAR model as the basis of econometric research on domestic and foreign investment and the Inner Mongolia economic growth the relationship between empirical research.Through economic growth and investment status quo analysis of the economic glory in Inner Mongolia in recent years, over-reliance on the resources, energy, and the unbalanced regional development is the economic development in Inner Mongolia, in the current state has vigorously promote energy conservation, optimize the industrial structure and change environment under the mode of economic development, Inner Mongolia still a lot needs to be done;VAR model results pointed out that the Inner Mongolia, fixed asset investment and foreign direct investment and economic growth in the long-term stability of the proportional relationship;fixed assets investment in Inner Mongolia’s contribution to economic growth significantly greater than the foreign direct investment, in view of the Inner Mongolia in the use of foreign direct investment started late, is now in the great strides the stage, the foreign direct investment in a growing contribution to economic growth in Inner Mongolia. Therefore, in order to protect the Inner Mongolia Autonomous Region, the long-term economic stability and rapid development from an investment perspective, this paper, the optimization of the structure of investment in fixed assets, and further increase the policy recommendations of the Inner Mongolia Foreign Investment efforts.