A Study on the Dynamic Mechanism of Group Investment and Local Economic Development

The relationship of the group investment and local economic development is not simply influenced, but the relationship of dynamic correlation which can mutually influence and promote each other. This paper establishes a system dynamic model of group investment and local economic development by applying the system dynamics, and analyzes typical cases. The result shows that group investment promotes local economic development, and the local economic development and the improvement of industrial environment also attract more group investment, these two sides form a virtuous cycle that can improve each other.