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Mechanics Of Investment Drivers In Chinese Economy

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  • OLATUNJI ABDUL SHOBANDE

    (Business School, University of Aberdeen, UK)

  • OLADIMEJI TOMIWA SHODIPE

    (Eastern Illinois University, US)

Abstract

We examine the predictors of investment in the Chinese economy for the period 1973- 2018. Our study adopts the Mark Nerlove (1962) partial adjustment hypothesis combined with instrumental econometric techniques based on the condition of the data used. Our results provide strong evidence that supports savings, export earnings, and final consumption expenditure as correlates of predictors of investment in China. Based on empirical results, we strongly recommend the integration of the unbaked population to a formal financial service to further stimulate more investment in the Chinese economy.

Suggested Citation

  • Olatunji Abdul Shobande & Oladimeji Tomiwa Shodipe, 2019. "Mechanics Of Investment Drivers In Chinese Economy," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 23, pages 7-32, June.
    • Handle: RePEc:aic:revebs:y:2019:j:23:shobandeo
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    2. Simplice A. Asongu & Joseph Nnanna & Rexon T. Nting, 2022. "A bad turn deserves another: linkages between terrorism, capital flight and industrialisation," International Journal of Public Administration, Taylor & Francis Journals, vol. 45(10), pages 760-772, July.

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    More about this item

    Keywords

    China; Neoclassical model; Investment; Savings; Econometrics;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical

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