The Empirical Analysis Of The Influence Of Investment And Consumption On Economy In China

Investment and consumption are two major factors on economy growth. The article calculates and analyses the influence extent based on the demand. It brings that the trend of economy promotion from investment is expanding. On the other hand, the trend of economy promotion from consumption is deflating in recent years. Further the paper analyses the relationship between investment consumption and general output by time series model. We find the influence from investment is rough and temporary and the influence from consumption is positive and permanent. While the investment rate keeps the high level in recent years. The consumption rate trend is descendent year by year. So the consumption factor should be mainly considered for macro-economy policy. The effective investment and extended consumption demand shall be adopted in order that the economy of China shall be persistent and healthy development.