Investment In Fixed Assets, The Level Of Consumption And Economic Growth

Fixed assets investment and household consumption are a means of promoting economic growth. In recent years, many scholars have studied the relationship between the fixed asset investment and economic growth or consumer and economic growth, but for fixed asset investment and consumer contribution to economic growth and its relationship with each other and far between.This paper selects the panel data of1997-2011years15years29provinces, the consumer, to study the relationship between the investment in fixed assets and GDP, literature analysis of three linear relationship or along-run equilibrium relationship, then the contributionrate size important distinguishing factors. Such studies generally agree that economic factors on economic growth there is a long-term effectiveness, and the role of different size. Breakthrough the assumption of linearity threshold regression analysis of the impact of fixed asset investment and the level of consumption and GDP, compared with the panel linear regression. The results show the panel threshold regression is better than the panel linear regression.Domestic demand is domestic demand, domestic demand, including both investment and consumption demand. Through research investment in fixed assets and the level of consumption to GDP, the practical significance of expanding domestic demand, simultaneous contrast elastic impact of consumer and investment in fixed assets to GDP, analyze how economic restructuring in the current environment, more effective the expansion of domestic demand.