The Research About Rural Fixed Assets Investment's Influence On Rural Economic Growth

The topic of this article is the research about rural fixed assets investment's influence onrural economic growth. As is known to all, rural fixed assets investment is one of the "threecarriages" to boost the rural economic growth and the main means which can increase therural fixed assets and improve the agricultural comprehensive production capacity. After thereform and opening, China's macroeconomic environment has changed very greatly.To studythe differences about rural fixed assets investment's influence on rural economic growth indifferent periods is beneficial for a better understanding of the impact of external shocks tothe economic variables' structure. Moreover, China's rural economic growth is not balancedamong regions,and the scale of rural fixed assets investment is also not aligned. Research ondifferent rural fixed assets investment's influences on rural economic growth in differentregions can help to optimize rural fixed assets investment,improve investment efficiency andpromote the sustained economic growth in rural areas.Thus, this study has a certain practicalsignificance. Through empirical research, this article analyses the rural fixed assetsinvestment's influence on rural economic growth which enriches the theory of investment to acertain degree,,and apply the method of cointegration with structural changes to study thetime differences of the rural fixed assets investment's influence on rural economic growthwhich can provide a reference for similar studies, thus,this study also has some theoreticalsignificance.The paper reviewes the research status of the relationship between fixed assets investmentand economic growth firstly,and then points out the inspiration and reference to thisarticle,and describes the theoretical basis of this research: the Harrod-Domar model, theneo-classical economic growth model, new economic growth theory and regionalnon-equilibrium theory,and this research redefines the concept of rural fixed assets investmentand rural economic growth on the basis of summarizing previous research, and analyses thestatus quo of rural fixed assets investment and rural economic growth. Based on the above,part V of this article carries the a general co-integration test on the relationship between ruralfixed assets investment and rural economic growth and finds out that the co-integrationrelationship does not exist,then study the time differences about the rural fixed assetsinvestment's influence on rural economic growth during1981-2009years by taking themethod of co-integration with Variable Structure, and finds out that the rural fixed assetsinvestment's influence on rural economic growth mutates structurally in1998.Theco-integration relationship is not significant before1998, however it becomes long-runequilibrium and highly significant during1999-2009. Based on the data of rural fixed assets investment and rural economic growth of30provinces (municipalities and autonomousregions) during1999-2009, Part VI analyses the impact of different regions empiricallythrough panel data model, and the results show that the size of the rural fixed assetsinvestment's influence on rural economic growth appears in echelon from low to high amongthe eastern region, the central region and the western region. Finally, this study summarizesthe precious research results and proposes several relevant policy proposals:increasing ruralfixed assets investment moderately, adjusting the investment structures of the rural fixedassets in each region,strengthening cooperation between regions, and improving farmers'consumption demand on the basis of a reasonable increaseon rural fixed assets investment.