Research On The Influence Mechanism Of China’s Natural Capital Investment On Economic Growth

In order to implement the green development concept that lucid waters and lush mountains are invaluable assets,and effectively reverse the economic growth pattern at the expense of the ecological environment,it is necessary to transform the economic growth momentum as soon as possible.This paper studies whether and how natural capital investment can become a new driving force for economic growth that promotes the construction of ecological civilization.First,starting from natural capital investment,on the basis of reviewing theories and literature,it defines the scope of natural capital investment,and proposes the mechanism of natural capital investment’s impact on economic growth.Secondly,it summarizes the changes and trends of China’s natural capital investment during the "11th Five-Year Plan" to "13th Five-Year Plan" period,and highlights the inevitability of natural capital investment.Third,the Cobb-Douglas production function model is extended to add natural capital investment variables,and hypotheses are put forward: one is that natural capital investment directly promotes economic growth,and the other is that natural capital investment indirectly promotes economic growth through human capital channels.Finally,empirical regression is carried out on China’s provincial panel data from 2006 to 2020 to test the direct effect mechanism,indirect effect mechanism,and regional differences of the impact of natural capital investment on economic growth.The conclusion of this paper: Natural capital investment not only directly promotes economic growth,but also indirectly promotes the economic growth through the accumulation of human capital.The forestry investment and ecological restoration and treatment investment in the eastern region has a more obvious role in promoting economic growth,and the investment in industrial pollution control and urban environmental infrastructure construction investment in the central and western regions have a more obvious role in promoting economic growth.Therefore,it is necessary to make overall design,rational planning,increase investment in natural capital,and inject new kinetic energy into economic growth.