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Macro Economy

Evolvement rule of investment and consuming rate and their relationship with economic growth

2014-08-29

By Li Jianwei 

Date: 2003/03/11

Abstract:  

That investment rate is continuously rising and consuming rate is continuously falling is the general rule of the economic structural evolvement in the course of the industrialization. But in given period, economy can attain the best optimal growth only when the investment and consuming rate get the certain level which the stable economic growth requires. Excess investment and excess consuming will both harm economic growth. Currently, China is stepping into the second half of industrialization, investment rate can be raised limitedly, and fundamental role of consuming should be emphasized to promote the economic growth.