The Optimal Investment Rate And Its Realization

Investment and consumption are two carriages of economic growth, have always been the cores of national macro-control factors, are particularly important to a large developing country such as ours, and have a linkage effect.This paper choices the data from 1978 to 2007, adds the factor-the income distribution gap and applies theoretical and empirical analysis on the impact of the optimal investment rate on economic growth under the factor, qualitative analysis on variations and links among a widening income distribution gap, lack of consumption and unsmooth path of savings to investment, vertical and horizontal comparison on the trend of investment rate and consumption rate, and regression analysis as well as quantitative analysis on parameters.This paper calculates the optimal investment rate in China is between 0.318-0.352 (on the condition that the Gini coefficient is in 0.2-0.3), and when the expected economic growth rate is 7.5%, the investment growth rate is 25.68%.