The Relationship Between Investment And Economic Growth

Between the investment and economic growth exist the dialectical relation of mutual promotion and mutual restriction . On one hand invest have the important contribution to economics and is one of the main motives of the economic growth, on the other hand the economic growth have strong influence and decide to invest behavior. Not having investment behavior, the economy increase lack delay effect; not having economy growth, invest and then become the water of no source. The investment can be divided into the supply effect and the demand effect to the contribution of the economic growth. Supply effect mainly means that the investment can increase effective supply and achieve increase of production scale and production ability by investment, thus raise effective supply and promote economic growth. To the economy growth, the investment either has the supplies effect, or has the demand effect, not only is main power , also is the primary factor of the economical undulation , having the-double-edge-sword function. The investment should obey and serve to the consume, consume has the demand, the investment produces the supplies, invests can pull but can't push as the fine lace . When we are processing investment—and—economical —growth relations , neither can neglect the investment function which make the economy grow, nor can rely on the investment blindly ; we must take seriously investment demand effect, and must take seriously investment supplies effect.In recent years, the investment rate received attention of the economic theory and the policy-making circus day by day , becaming the reference of judging investment situation and the formulation economy plan. We think, the investment rate has the unique value regarding the economic analysis and the decision , but it also has the obvious limitation. We only unit the investment rate and the investment rate together, then we can mutually make up for one's deficiency by learning from others'strong points, which is comprehensive, and is the objective reflection of reality. It will prevent possible fault in economic analysis and policy-making work.. This text set out from the relation of the investment and economic growth, analyse...