Author(s)

Xide Zhang ¹, Shaohua Liu ², Yaxin Guo ², Xinpeng Ji ²

Affiliation(s)

¹ Statistics Bureau of Zibo City, Shandong, Zibo, 255095, China
² School of Marxism, Shandong University of Architecture, Jinan, 250101, Shandong, China

Corresponding Author

Xide Zhang

ABSTRACT

This study re-evaluates the causal relationship among investment, economic growth, and industrial structure upgrading in China based on two decades of economic data. A dynamic spatial Durbin model is constructed to explore the temporal and spatial lag effects of fixed asset investment on industrial structure adjustment, with a focus on industrial structure rationalization and upgrading. Granger causality tests show that China's expanded economic scale significantly boosts investment scale, which in turn notably facilitates industrial structure rationalization. Spatial model results further reveal marked regional disparities in investment's impact on industrial structure upgrading: investment in the central and western regions is critical to local industrial structure rationalization, while the eastern region's industrial structure rationalization depends more on its prior-period level; investment in the eastern and central regions significantly advances local industrial structure upgrading, yet there is insufficient evidence confirming that western investment substantially drives this upgrading process.

KEYWORDS

Fixed Assets Investment; Industrial Structure Upgrading; Granger Causality Test; Dynamic Durbin Space Model

CITE THIS PAPER

Xide Zhang, Shaohua Liu, Yaxin Guo, Xinpeng Ji, A Measurement Study on the Impact of Fixed Asset Investment on China's Industrial Structure Upgrading. Agricultural & Forestry Economics and Management (2025) Vol. 8: 1-13. DOI: http://dx.doi.org/10.23977/agrfem.2025.080201.

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