Positive Analysis on the Relationship between Fixed Asset Investment and Economic Growth of Jiangsu Province
Yu Yang
Abstract
Yu Yang
Abstract
Econometric methods were applied in this paper to study the time series of GDP and fixed asset investment from the year 1985 to 2005 in Jiangsu province,by testing the Co-integration relations,ECM and Granger Causality.The results concluded that the fixed asset investment had a significant effect in propelling economic growth of Jiangsu.Each percent increasing in fixed asset investment would make GDP increased by 0.81 percent,and they have a long-term stable relation and bipartite causality.Some corresponding countermeasures would be given based on the analysis above.
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Econometric methods were applied in this paper to study the time series of GDP and fixed asset investment from the year 1985 to 2005 in Jiangsu province,by testing the Co-integration relations,ECM and Granger Causality.The results concluded that the fixed asset investment had a significant effect in propelling economic growth of Jiangsu.Each percent increasing in fixed asset investment would make GDP increased by 0.81 percent,and they have a long-term stable relation and bipartite causality.Some corresponding countermeasures would be given based on the analysis above.
Key concepts: Fixed asset, Granger causality, Investment (military), Economics, Fixed investment, Asset (computer security), Causality (physics), Fixed effects model