Fixed assets investment analysis

A cointegration model was established to explore the influence of loan and foreign direct investment on total amount of fixed assets investment in China. Basing on the data from September 2005 to May 2009, the paper proved that there is a long and stable relationship between them, providing a reference for prediction of domestic fixed assets investment in the future research in China. The total amount of fixed assets investment was hypothesized as the dependent variable, while loan and foreign direct investment were as the independent or explanatory variables. As now the loan and foreign direct investment factors are seldom considered as economic variables in analyzing fixed assets investment in China, the paper tried to explain the change of fixed assets investment and shock of loan and foreign direct investment on it.