The Analysis Of Regional Discrepancy On The Relationship Between Fixed Assets Investment And Economic Growth Of Our Country

Since reform and opening up, the economic situation has been in a state of rapid development in China, GDP has maintained at a level of around 10% in every month during the whole 2008, the economic benefits and the people's livelihood have continued to improved and various reforms have been carried out in an orderly manner. However, there are still many questions about economic development in China. The increasing imbalance among the East, Middle and Western region is one of the most important issues. The large gaps among three areas will constraints the steady development of economic coordination, because the instability of the macroeconomic, lead to social problems and will not be conductive to achieve the goal of common prosperity.There are many reasons which could cause the large gap of economic development among the three regions, the most important and direct one is the difference of the relationship between the investment in fixed assets and economic growth. The difference is not only in the aspect of quantity scale, but in investment returns. The different roles of the fixed-asset investment growth on the economy can cause the imbalance of economic development in three areas. Hence, there is reference value of the analysis of the relationship between the problem of the fixed asset investment and economic growth among the differences areas because it can promote the steady development of economic co-ordination and the national economy in China.There are four chapters in this paper. The author recalls the literature review and the research status of the fixed-asset investment and economic growth in the first chapter. This part is the theoretical foundation in the whole paper, in which the author introduces the theory of the relationship between the investment and the economic growth and the disparities of the regional economic, the author also organizes the research status of this issue from the scholars at home and abroad.In the second chapter, the author primarily analyses the overall situation of the fixed-asset investment and the economic growth and explain the high degree of correlation between them. Then, the author illustrates the distribution of them in the three regions and draws a conclusion that the distribution is imbalance, the basic pattern is that the situation in the eastern region is strong and which in the western region is poor. Meanwhile, the situations of GDP are also imbalance among the difference areas, the basic truth is that GDP in the eastern region is far more than which in the middle and western regions. Next, the author compares the relationship of the fixed-asset investment and the economic growth in the three regions in the aspect of quantity index. The index contains two major categories, one is the effectiveness, which could measure the economic benefits of investment including the coefficient of investment results and the investment elasticity of the economic growth, the other one is contribution, which could measure the contribution of the investment to the economic growth including the investment rate and the contribution rate of the investment to the economic growth.In the third chapter, the author focuses on analysis of the reason why there is a discrepancy of the relationship between the fixed assets investment and the economic growth. The author measures the stage of the process of industrialization in the three regions in the aspect of the average GDP and the situation of the industrial structure, and then explain the problem that the different directions and focuses of the invest because of the different stage of the process of industrialization will cause the difference relationship with the economic growth.In the forth chapter, the author makes some recommendations of the promotion of coordinated regional development directionally. It includes the following three aspects, the first one is deepening structural reform and improving the investment efficiency, the second one is taking differently economic policy depending on the directions and focuses in three areas, specific for that, the focus of investment must be toward the high value-added industries in eastern region. The promotion of the industrial structure upgrading the acceleration of urbanization pace and the city cluster development must be enforced in the middle region. The increasing of investment and the improvement efficiency of investment in fixed asset must be done in the western region.We can obtain the following conclusions through the above-mentioned study:(1) The effectiveness in the eastern region is higher than that in the middle and western region. We can get a conclusion that the investment in fixed assets for economic growth and the benefits are better because that the investment elasticity is much higher than two others through the empirical analysis, analysis of effectiveness index. However, nowadays the fixed-assets are not the important reason that causes the economic grow because the contribution rate of the fixed-assets is lower than the past year.(2) The fixed-assets investment has drown an increasingly important role in the aspect of economic growth in the western region because that the contribution rate of the Fixed-assets investment has been the highest since 2000.However, relationship between the fixed-assets investment and the economic growth must been enforced.(3) The level of industrialization in the eastern region is in the advanced stage, that in the middle and west region is in the intermediate stage, but the former is higher than the latter by measuring the level of industrialization of its index. The differences of the level of industrialization could cause the difference s of the directions and focuses even cause the differences of the investment efficiency and the relationship between the fixed-assets investment and the economic growth.