Over-Dependence of GDP on Investment at the Provincial Level in China——FAI/GDP approaching 100% in Some Provinces

It is not scientific to calculate the GDP of a province with the expenditure approach.As an alternative,the ratio of FAI(fixed asset investment)-to-GDP can be used to roughly estimate the share of investment in GDP.However,attention should be given to the phenomena that the FAI was higher than GDP in Jilin and other provinces in 2009.The key is to analyze whether the FAI is real and there is a misreporting problem.Internationally,many countries have experienced the phase of over-dependence on investment so that the investment ratio demonstrates a given procyclical feature in their economic development.With the problem of over-dependence of GDP on investment in China,especially in central and western China,great efforts should be made to boost the transition of the economic growth modes in order to avoid the fact that the government transfers the investment and subsidies in large quantity instead of inducing industries providing job opportunities and propelling the rise in the per capita income level in the regions.