An Empirical Study On Chinese Capital Investment Dynamic Efficiency And Its Influencing Factors

The key to analyzing capital accumulation and economic growth is capitalinvestment dynamic efficiency. The economic growth of China has been largely driven bycapital investment for long. However, with high investment and high consumption, it isnecessary to improve the dynamic efficiency of capital investment to ensure a long-lastingincrease in economic growth. Therefore, to judge the performance of Chinese economicgrowth, find out the reason for changes in capital investment dynamic efficiency andmake policy to bring in more investment, the study of its measurement and factors thataffect capital investment dynamic efficiency is of vital importance.According to the features of macro-economic theory and the statistic account ofnational income, this thesis redefines the formula of total revenue accounting capitalinvestment. It then takes advantage of AMSZ, making whether the total profit is largerthan the investment a criterion for the judgment of the dynamic efficiency of economyand examining the dynamic efficiency of economy in Chinese capital investment. Then, ittests the decisive factors of Chinese capital investment dynamic efficiency with the helpof demonstration proof-test and multivariate regression model. Lastly, this thesisdiscusses how to improve the Chinese capital investment dynamic efficiency. Theconclusions are as follows.Firstly, Chinese investment dynamic efficiency consisted of validity and invalidityon a whole. The economic performance was of high efficiency from1994to2008and ithad been of low efficiency since2009.Secondly, in term of district, there was remarkable difference in different districtsand provinces with the east at the top and the west at the bottom. The dynamicefficiency in only a few provinces in the west was invalid from1998to2008while thatof most provinces in the west and middle was invalid with just a few provinces in theeast valid from2009to2011.Thirdly, from the perspective of industry, the total change of the capital investmentdynamic efficiency for each industry was consistent but there was still big difference.The net income ratio of the secondary industry ranked the highest while that of theprimary industry ranked the lowest and its performance remained invalid in2005.Fourthly, there was a negative correlation between the net income of the capitalinvestment and marketing process, the dual structure of urban and rural areas, capital-labor ratio and productive expenditure. And there was a positive correlationbetween the net income of the capital investment and technical progress deviation andhuman capital accumulation.Fifthly, there are some strategies for improving capital investment dynamicefficiency-deepening structural reform, promoting changes in the mode of economicgrowth and improving the economic performance, taking advantage of the role marketplays in the function of resources optimization disposition and its decisive effect,focusing on technological advancement and human capital investment and encouragingmore investment into the market abroad while bringing more foreign investment.