On Investment And Economic Growth: Solving The Problem That Exist In China's Investment

Investment and economic growth question have been the focus that people have paid close attentin to all the time. A lot of economists regard investment as one of most inportant factor in economic growth course. The dialectical relation of mutuallying promote, restricting each other exists between investment and economic growth. On one hand ,making the investment will have important irreplaceable contribution to the economic growth, and it is one of the main motive force of the economic growth; On the other hand ,the economic growth is influencing and determining the behavior of investment strongly. Applying Harrod-Domar model to the relation of investment and economic growth in the present stage of our country ,suppose that regards deposits in the model as investment and 1/c as the output that the per unit capital can bring (namely investment efficiency).This model can develop into:economic growth rate=investment rate×investment efficiencyThis model has paid attention to and put emphasis on investing in the function on the economic growth, and have analysed the role in economic growth and interreaction of investment rate and investment efficiency.Using this model,it have positive meanings for analysing and determining the economic growth rate of one country and style of economic increase.This thesis proposing one country realizes economy grows at top speed,can improve the rate of investment and improve the efficiency of investment.On one hand enough capital and fund are guaranteed basically,it is still a bottleneck factor of restricting the economic growth that investment efficiency of the capital is low on the other hand.The economic growth of our country is by investing in pulling mainly for a long time,and the speed of the economic growth is mainly realized by the high investment.There are more ones that pay close attention to the quantity of the economic growth in our country,there are less ones that and pay close attention to the quality of the economic growth.This kind of economic growth is with very high costs,costly.Not only bring the pressure to resource environment of our country but also can not realize the economic stability increases continuously. Even economy kept higher growth rate in short-term, can not offer more effective supply either, the people's living standard can not get effective improvement either. Finally, to the question that our country exists while making the investment, drew the solution of the following:(1)Confirm a rational rate of investment ,keep investing in fast growth ;(2)Perfect the investment structure, improve the efficiency of investment;(3)Devote more efforts to investing in the structural adjustment, promote economic strcture optimization and upgrading.