Investment, Consumption and Xinjiang Construction Group’s Economic Growth:Based on Cointegration and Local Polynomial Regression

Firstly,this paper applies cointegration to analyze the relationship between Xinjiang Construction Group(XJCG)'s investment,consumption and economic growth.Through the research,we found that there is long-term equilibrium among them.But the results of Granger Causality tests show that investment and consumption don't have Granger Causality relationship with economic growth.In order to know more about the relationship among them,this paper uses the ridge method to improve local polynomial method,then use this method to fit the GDP by investment,last year investment and consumption,and get the partial derivatives.Then use the partial derivatives to appraise the affection of investment and consumption to economic growth.We found that investment and consumption have nonlinear and period influence on XJCG's economic growth.