An Empirical Study on the Relationship of Investment in Fixed Assets and Economic Growth in Xinjiang

Based on data for 1986 to 2010 in Xinjiang,this paper studied that the relationship between investment in fixed assets in Xinjiang and its economic growth by applying coordination-integration test,error correction model and Granger cause-effect test.The results showed that the relationship of investment in fixed assets and economic growth in Xinjiang maintains both a short-term and a long-term stability,and a two-way causal relationship.Meanwhile,this paper recommended how to make greater contributions to the economic growth by investment in fixed assets in Xinjiang.