The Econometric Model Research on the Relativities Between Fixed Assets Investment and Economic Growth Based on the Data of Hubei Province

Fixed assets investment plays an essential role in the whole production processes, which influence the production capacity of enterprises directly. With the development of the economy in our country, it is necessary for us to analyze the domestic investment in fixed assets from the view of macroscopic, in order to control the steady fast development of economy. Adopting the method of metrological economics, the paper carries out the coordination-integration test on two time-sequential data concerning gross domestic product (GDP) and fixed assets investment of Hubei Province from 1996 to 2008. The model analysis indicates that the fixed assets investment considerably accelerates the economic growth, but there exists neither a long-term coordination-integration relationship nor a two-way causality, so the present author puts forward four countermeasures accordingly.