Empirical Research On The Relationship Between Construction Project Investment And Economic Growth In China

Since the reform and opening-up, the economic has made great development. Along with this, the investment scale of construction project has been expanding rapidly. Generally, the output of the construction project plays an important role in economic growth. But it will inevitably make some problem. So the study on the relationship between the construction project and economic growth is necessary.In this paper we analyze the relationship between the construction project investment and economic growth based on the economic growth and investment theory and focused on the empirical analysis. Firstly, we analyze and summarize the theory and research that are related to the investment and economy, then analyze the promotion and inhibition of economy from the qualitative point. Secondly, we test the relationship between the construction project and economic growth with Co—integrate Regression and Granger Causality Test. Thirdly, the paper calculates the construction project investment effect on economic growth combined the C-D production function and CES production function. After the contrast, we can get the model that more suitable to our condition. At the same time, we can get that the investment of construction project plays a significant role in promoting the economic growth, and its rate of contribution is about 49.97%, which is far higher than other factors of production.Based on the research and analysis, we adopt the Barro model (1990) to estimate the optimal scale of construction project investment to the economic growth, also prove that the moderate scale of construction project investment can promote economic growth significantly, but too much construction project investment will restrict the economic growth.At last, some policy and suggestion for construction project investment would be given based on the empirical analysis and estimation the optimal scale above. So that we can make the adjustment direction of the construction project investment in China as well as the strategies of the national macroeconomic regulation and control.