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Research Paper | Finance | China | Volume 7 Issue 8, August 2018
Research on the Influence of Infrastructure Investment on Real Economy Revitalization
Abstract: After the reform and opening up, infrastructure investment has become an important symbol to measure the economic and social development, and the real economic level is the basis of a country's comprehensive national strength, so the study of economic and social development to study the impact of infrastructure investment on the real economy. Based on the data from 1991 to 2016, this paper uses the solow growth model to introduce the infrastructure and non - infrastructure capital stock into the C - D production function, and calculate the relevant elasticity coefficient by cointegration test. And further through the Granger causality test to measure the relationship between the change of capital stock and the effective growth of the real economy. The empirical results show that the elasticity coefficient of the capital stock in China is larger than that of the non-infrastructure capital stock, and the increase of the capital stock of the infrastructure is the Granger reason which leads to the effective growth of the real economy. This conclusion proves that the infrastructure investment For the promotion of effective growth of China's real economy play an important role in promoting.
Keywords: infrastructure investment, real economy, Solow growth model, infrastructure capital stock, Granger causality test
Edition: Volume 7 Issue 8, August 2018,
Pages: 610 - 614