Influence Of Investment On Economic Growth During The "Eleventh Five Project" Period

Firstly, this paper illustrates how investments contribute to the economic growth intheoretical perspectives based on the domestic and international research; then it discusseshow investments make contribution to the economic growth from three different aspectsduring the “Eleventh Five Project” period.The first aspect is how the economic growth is influenced by investment scales. Theinvestment scales during the “Eleventh Five Project” period are illustrated. The empiricalanalysis is conducted based on econometric theories relating to VAR model (established onInvestment, Consumption and Economic Growth) and linear regression model (InvestmentScale during the “Eleventh Five Project” period). The issues regarding Investment Scaleduring the “Eleventh Five Project” period are pointed out and the suggestion addressing thoseissues is proposed in order to perfect the investment scale.The second aspect is how the economic growth is influenced by investment structure. Theinvestment structure during the “Eleventh Five Project” period is illustrated. The empiricalanalysis is conducted based on econometric theories relating to VAR model (established onthe investment structure of three types of industries) and linear regression model (establishedon the investment industries). The issues regarding Investment Structure during the “EleventhFive Project” period are pointed out and the suggestion addressing those issues is proposed inorder to improve the investment structure.The third aspect is how the economic growth is influenced by sources of investment.The sources of investment scales during the “Eleventh Five Project” period are illustrated.The empirical analysis is conducted based on econometric theories relating to VAR model.The issues regarding sources of investment during the “Eleventh Five Project” period arepointed out and the suggestion addressing those issues is proposed in order to stimulate theeconomic growth.The purpose of this paper is to identify the positive effects of investment on economicgrowth and the potential drawbacks of investment which have effected the sustainableeconomic growth through researching the influence of investment on economic growth duringthe “Eleventh Five Project” period in order to ensure that investment will continue to make contribution to the sustainable economic growth during the “Twelfth Five Project” period andlater.