International Conference on Construction and Real Estate Management 2020
The Relationship between Fixed Asset Investment and Economic Growth of Three Industries in Shenzhen
Publication: ICCREM 2020: Intelligent Construction and Sustainable Buildings
ABSTRACT
As one of the economic centers of China, Shenzhen has played an important role in economic growth. Fixed asset investment has a lagging effect and contemporaneous effect through the formation of capital stock and contemporaneous demand respectively. This paper uses the VAR model and the directed acyclic graph (DAG) to analyze the relationship between fixed asset investment and economic growth of three industries in Shenzhen from 1979 to 2017. The results show that: The fixed asset investment can have a lagging effect on the added value of Shenzhen’s secondary and tertiary industry, but the added value of Shenzhen’s secondary and tertiary industry cannot have a lagging effect on the fixed asset investment of Shenzhen. In addition, the added value of Shenzhen’s secondary industry can have a contemporaneous effect on the fixed asset investment of Shenzhen.
Get full access to this article
View all available purchase options and get full access to this chapter.
ACKNOWLEDGEMENTS
The work is supported by National Science Foundation of China NSFC 71673067.
REFERENCES
Blomstrom, M., Lipsey, R.E. and Zejan, M. (1993). “Is fixed investment the key to economic growth?” National Bureau of Economic Research, 28(3), 54-62.
DeLong, J.B. and Summers, L.H. (1991). “Equipment investment and economic growth.” The Quarterly Journal of Economics, 106(2), 445-502.
Dai, X. and Wang, X. (2008). “The positive analysis of the effect of fixed assets investment on economic growth in Fujian province.” Yunnan Geographic Environment Research, 103(1), 76-80. (in Chinese).
Kwan, A.C., Wu, Y. and Zhang, J. (1999). “Fixed investment and economic growth in China.” Economics of Planning, 32(1), 67-79.
Kleiner, M.M. and Ham, H. (2002). “Do industrial relations institutions impact economic outcomes: international and US State-level evidence.” National Bureau of Economic Research, 47(2), 65-72.
Krishna, K., Ozyildirim, A. and Swanson, N.R. (2003). “Trade, investment and growth: nexus, analysis and prognosis.” Journal of development Economics, 70(2), 479-499.
Lai, P. (2016). “Productivity dilemma of China’s economic growth: growth decline under expanding investment.” The Journal of World Economy, 39(1), 75-94. (in Chinese).
Mao, L. (2019). “Dynamic econometric model and analysis of the role of fixed asset investment in promoting economic growth.” China Management Informationization, 22(11), 131-133. (in Chinese).
Podrecca, E. and Carmeci, G. (2001). “Fixed investment and economic growth: new results on causality.” Applied Economics, 33(2), 177-182.
Song, L. (2011). “Re-testing the relationship between fixed asset investment and economic growth in China: 1980-2010.” Macroeconomics, 11, 17-21+46. (in Chinese).
Tvaronavičius, V. and Tvaronavičiene, M. (2008). “Role of fixed investments in economic growth of country: lithuania in European context.” Journal of Business Economics and Management, 9(1), 57-64.
Yan, S. (2017). “Research on the relationship between fixed assets investment and economic growth-taking national energy base, yulin city, as an example.” Economic Research Guide, 94(2), 102-104. (in Chinese).
Information & Authors
Information
Published In
ICCREM 2020: Intelligent Construction and Sustainable Buildings
Pages: 487 - 493
Editors: Yaowu Wang, Ph.D., Harbin Institute of Technology, Thomas Olofsson, Ph.D., Luleå University of Technology, and Geoffrey Q. P. Shen, Ph.D., Hong Kong Polytechnic University
ISBN (Online): 978-0-7844-8323-7
Copyright
© 2020 American Society of Civil Engineers.
History
Published online: Oct 14, 2020
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.