An Empirical Study On The Relationship Between Infrastructure Investment And Economic Growth In Jilin Province

Since infrastructure has influence on all aspects of people’s basic necessities of life and social production, numerous economists have thus paid attention to the importance of the infrastructure investment and conducted much research on it, providing support to the importance and antecedence of the infrastructure. However, the majority of the researches are about the relatively developed provinces or regions in China, and few about Jilin province. With continuously more new infrastructure investment project established in Jilin, it is required to verify the specific effect of the infrastructure investment on the economic growth of Jilin. According to the macro-theory that infrastructure investment can affect economic growth and development economics theory, this thesis, with appropriate theoretical innovation, conducts analysis on the direct and indirect transmission mechanism of infrastructure investment’s effect on economic growth. After the statistical description of the infrastructure investment in Jilin province from1996to2012, this thesis, based on the co-integration theory and error correction in the quantitative analysis, makes a conclusion that an increase of1%in Jilin infrastructure investment leads to an increase of0.06936%in economic aggregate. Conclusion can also be made from the Granger verification that the infrastructure investment in Jilin province from1996to2012only has short-term effects on economy while the long-term effects are unremarkable. At the end of this thesis, it gives a brief evaluation on the infrastructure investment in Jilin and provides suggestions respectively on investment structure, system installation political environment and other aspects.