An empirical research on investment, employment and economic growth in Beijing

Investment is an important factor in promoting employment and economic growth, this article studies the impact of investment on employment and economy in Beijing from 1999 to 2009 by using co-integration test, Granger causality test and error correction model. The empirical results show that: there is a long-term equilibrium between investment, employment and economy. Investment is the Granger reason for employment and economic. Economic is not the Granger reason for employment. Investment can promote employment and economy but with a hysteresis effect and short-term effect. Economic growth cannot improve the employment effectively. In view of this result, how to optimize investment and establish a long-term effect on employment and economic, is the focus of economic work.