| Investment is an important driving force in the process of China’s economic development. Cyclical fluctuations in investment will lead to economic fluctuations. Since 1978, China’s fixed assets investment has increased not only in total amount, but also improved in terms of investment growth. And there are regional differences in fixed assets investment. But in recent years, China’s fixed assets investment growth slows down, in some areas even appears negative growth. In addition, as one of the crucial factors influencing on economic development, the investment efficiency has caused effects on economic growth. And the regional difference of efficiency of FAI, has significantly explained different economic growths among provinces. In the background of economic slowdown and investment-efficient decline, we carry on the comparatively interprovincial research of the relationship between FAI and economic growth by using the method of combination of theoretical analysis and empirical analysis. Through exploring the interprovincial FAI, we wish that we can change the developing patterns of the extension and expansion at the present state in China, do a better job of economic transition, and promote the sustainable and healthy development of our country’s economy.Using provincial data, this paper from the perspective of investment scale, investment growth, investment ratio and regional distribution, does provincial comparative analysis towards the evolution of China’s FAI. Research finds that the differences of economic developing conditions and initial endowments lead to the large differences of investment scale, growth and ratio. And since the market economy reform, the fixed assets investment in provinces has dramatically increased. There is an expansive trend in the regional disparity of investment. Eastern provinces have larger scale of investment and high concentration; Although the central and western provinces investment accounts for the proportion is not high, investment gets faster development. And the investment growth is significantly higher than other regions; In recent years, the scale of fixed assets investment in northeast China has declined, and investment growth even turns negative existing seriously capital spillover.Embarking from the endogenous growth theory, this paper analyzes the influence of China’s FAI towards economic growth from 1991 to 2014, through establishing a dynamic panel GMM model. The result shows that investment generates significant positive promoting effects on economic growth. By decomposing the growth model, the paper concludes that the regionally economic difference resulting from the difference of inputs among provinces. The eastern provinces own much more investment, higher degree of openness and technological innovation, realizing rapid economic development.On the analytical basis that the investment has positive promoting effects on economic growth, this paper goes further research on the impact mechanism of regional economic growth due to the differences in investment efficiency. Research shows that the efficiency of fixed assets investment in China has been overall declining since 1991, and interprovincial difference of investment efficiency is gradually expanding. The investment efficiency of eastern provinces is generally much higher than other regions, and gradually tends to be stable development, which means that resource allocation is more reasonable. |
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