Comparative Research Of How To Push Economic Growth By Investment And Consumption

With the promotion and development of the economic system reform in our country, the economy is increasing rapidly. The main factors to push the economy are investment and consumption. But which is more important factor between investment and consumption? This is an issue to discuss. So this article is based on this issue.This article analyses the development of economy, the development of investment and the development of consumption, and based on analysis shows that since the reform and opening up, China's GDP, Consumption and investment are at the stage, this article analyses theoretically the relationship between investment and consumption on the basis of Solow growth model, and use cointegrating parameter, granger causality test and regression model to analyze the relationship between GDP, investment and consumption. The conclusion is the more important factor to push the economy is consumption, when let consumption push the economy, investment need to go with consumption. At the last two parts of the article, the article analyzes the problems of the investment and consumption, and also analyzes how to push the economy by investment and consumption, this article also analyzes how to push the economy by technology and energy.This article brings two new ideas: one is that this article analyses theoretically the relationship between investment and consumption on the basis of Solow growth model; another is that this article think the more important factor to push the economy is consumption.