The Influence of Investment in Fixed Assets on Economic Growth in Shanxi Province
Zhang La-feng
Abstract
Zhang La-feng
Abstract
Based on the time series data of GDP and investment in fixed assets of Shanxi province from 1980 to 2008,this paper analyzes the relationship between the two variables by using econometrics methods such as cointegration test,error correction model and Granger-causality Test.The empirical result shows that there exists long-run steady relationship between investment in fixed-assets and the economic growth and investment in fixed-assets is the main driving force of the economic growth in Shanxi province.
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Based on the time series data of GDP and investment in fixed assets of Shanxi province from 1980 to 2008,this paper analyzes the relationship between the two variables by using econometrics methods such as cointegration test,error correction model and Granger-causality Test.The empirical result shows that there exists long-run steady relationship between investment in fixed-assets and the economic growth and investment in fixed-assets is the main driving force of the economic growth in Shanxi province.
Key concepts: Fixed asset, Cointegration, Investment (military), Economics, Fixed investment, Granger causality, Error correction model, Econometrics