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Study On The Hamonization Of Fixed Assets Investment And Economic Development

Posted on:2008-08-13Degree:DoctorType:Dissertation
Country:ChinaCandidate:G F GaiFull Text:PDF
GTID:1119360215953542Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
The basic goal of scientific development concept of investment is to achieve harmonization of investment and economic development. Investment is an important influencing factor to economic development. This has been proved theoritically and practically by economists. The speed of economic development determines the scale of investment which, on the contrary, determines the potential growth ablility of economy in the future. The speed of economic development determines that of investment growth, while the industrial structure of investment determines the tropism of industrial structure development of economy growth. Therefore, there is a very high pertinency between investment and economy.According to Marxist Economic Cycle Theory, changes of investment always influence the development of economy, repeating an inharmony-harmony-inharmony process. Therefore, envisaging problems occurred in the investment activities in China and summarizing and analyzing previous trends and models of investment development has become the brass tacks foundations of bringing forward scientific development concept into the investment field. The study of harmonization of investment and economic development is of theoritical and practical meaning.The harmonization of development is not only the premise of maintaining proper functioning of the society, but also an important symbol of measuring the development level and quality of a country. This study involves whether the investment scale is in harmony with the economic development, whether the investment structure can reach the goal of improving economic structure, whether the investment results can meet the needs of the economic development of the nation.The harmonization of investment and economic development refers to a dynamically interacting process among the expansion of investment, the adjustment of investment structure and economic development within a specific region and a specific period. This dynamic corresponding process can be understood as follows: guided by total demand, the national economic controling body establishes general development goal of state-owned economy, which is in consistency with the structure of needs, i.e., different industrial development goals are based on different industrial needs structure. Guided by the national development goal, the economic controling body considers industrial development goals and needs and sets investment development strategy. This strategy is both a complete scale strategy and a structural strategy as well. The structural strategy is designed and formed basing on the industrial development status, while investment strategy is the primary method in reaching the economic development goal. Through investment in the three industries, the needs of the three industrial development are met and their output goals are reached.The test of the harmonization of investment and economic development can not merely rely on qualitative analysis. Quantitative analysis is also needed. This thesis designed correlative indicators between investment and economic development including synchronization indicator, pertinency indicator, effectiveness indicator and relative validity indicator.The economy body makes clear the possibility of interaction between investment and economic development by testing their synchronization, clarifies the realisticness of interaction by testing their correlativeness, and figures out the efficientness of interaction by testing the effect of investment. By testing the synchronization, correlativeness and efficientness of investment and economic development, we can make sure of the harmonization process of their interaction (dynamic balance). By using Data Envelopment Analysis to test validity indicator of investment and economic development, we can check the relationship of harmonious development between investment and economy. While using this indicator system to describe the relationship between investment and economic development, we can continuously find whether the current investment harmonizes with economic development, and, if not, what the influencing factors are. According to Investment Self-determination Theory, the economy body must design new investment strategy according to constant feedback to assure the synchronization, correlativeness and validity of investment and economic development, and finally reach the goal of sustained growth of economy and continuous updating of industrial structure in economic development, and constantly achieve the process of harmony-inharmony-harmony between investment and economic development.Static and dynamic harmonization indicators, relative indicators that can be used to test the harmonization of investment and economic development, can be elicit by using mathematical calculational methods on the synthetical effect of the above indicators. From the aspect of investment scale, there is synchronization, strong correlativeness and certain scale effectiveness between fixed assets investment and economic development in Jilin province. As a whole, it has gone through a harmony-inharmony-harmony process. From 1952 to 2005, the increase speed of fixed assets investment is lower than that of economy in Jilin province, which indicates that investment scale is very small in this province.From the aspect of the structure of investment reproducing, the investment in infrastructuring and technology alteration of Jilin province is inconsistent with the evolvement laws of extensive and intensive investment, the methods of economy growth has a typical trait of extensiveness. On one hand, it is connected with the economy basis for technology in Jilin's investment enviornment; on the other hand, it has something to do with the national nonequilibrium strategy.From the aspect of the industrial structure of investment, there is synchronization between the investment structure and the industrial structure in Jilin's three industries, and they have a positive pertinency. This indicates that thethe industrial investment structure is a focus of the industrial structure adjustment of Jilin province. (1) The first industry is an advantage industry of Jilin province. With years of reform and opening, by increasing investment, the investment effect coefficient of the first industry of Jilin province improves very quickly. (2) The effect of the second investment structure is not satisfying, possibly caused by many reasons. The main part of the second industry is manufacturing in which technology updates very quickly. In addition, manufacturing is a capital-intensive industry where the investment effect is not completely decided by fixed assets investment, and factors like technology progress should be considered as well. (3) The investment effect of the third industry is to be improved and it should be an important investment field of Jilin province.By using Dala Envelopment Analysis, the results of estimate with parameters of investment structure and industrial structure of Jilin province indicates that the investment scale and technology efficiency reached a relatively harmonious status after 2000, while the investment technology went through an improving process of high-low-high efficiency. It clearly shows that the investment structure caused a harmony-inharmony-harmony process in the adjustment of industrial structure of Jilin province.The conclusion of this study indicates that investment and economy has undergone a dynamic process of inharmony-harmony-inharmony-harmony in a long run.Investment is a process of strategy selection and implementation. In the process of invigorating old northeast industrial base, Jilin province should use the opportunities, take advantage of its own strengths, reconstruct its weak foundations and choose corresponding investment strategies to realize prosperity of the economy.The investment strategy of Jilin province includes scale strategy and structural strategy. The scale strategy aims to expand capital inventory and change the slow growth of economy caused by a long-term inadequacy of investment. Because of a high proportion of state-owned economy, Jilin's weak financing ability can not improve merely relying on investment of the country. The low level of life quality leads to shortage of consumption and the inadequacy of opening to the outside world results in low external financing ability. These holdback the achievement of investment scale. Therefor, different methods of inviting investments should be used to provide sufficient fixed assets investment resources. While, the structural strategy is to reach a convergency effect by investing in supportive industries, improving quality of production elements and using driving effect of demand elements and adjustment steps of enterprise strategies. The concrete investment strategy of Jilin province is as follows: to build a supportive system based on scientific investment concept; to look for capital support to settle the problem of insufficient investment and realize investment increase's positive influence on economic development; to reconstruct traditional industry with high-tech and improve investment in technology progress; to regard industrial structure adjustment as the main task of investment, shape regional industrial competitive power, form economy-guiding industry group and establish foundations for economic development; to improve investment effect and carry out scientific decision-making and management.
Keywords/Search Tags:fixed assets investement, economic development, harmony, investement stratygy of Jilin province
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