A Case Analysis of the Relation Between Fixed Assets Investment and Economic Growth in Gansu Province
Qingmei Li
Abstract
Qingmei Li
Abstract
Adopting the method of metrological economics,the paper carries out the coordination-integration test, error correction model(ECM)analysis and Granger cause-effect test on two time-sequential data concerning gross regional product(GRP)and fixed assets investment of Gansu Province from 1993 to 2006.The model analysis indicates that the fixed assets investment considerably accelerate the economic growth,but there exists neither a long-term coordination-integration relationship nor a two-way causality,so the present author puts forward three countermeasures accordingly.
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Adopting the method of metrological economics,the paper carries out the coordination-integration test, error correction model(ECM)analysis and Granger cause-effect test on two time-sequential data concerning gross regional product(GRP)and fixed assets investment of Gansu Province from 1993 to 2006.The model analysis indicates that the fixed assets investment considerably accelerate the economic growth,but there exists neither a long-term coordination-integration relationship nor a two-way causality,so the present author puts forward three countermeasures accordingly.
Key concepts: Fixed asset, Investment (military), Error correction model, Granger causality, Economics, Causality (physics), Term (time), Econometrics