04824oam 22012134 450 991078869310332120230828235718.01-4623-6391-11-4527-9957-11-283-51788-497866138303331-4519-0978-0(CKB)3360000000443958(EBL)3014322(SSID)ssj0000940716(PQKBManifestationID)11600652(PQKBTitleCode)TC0000940716(PQKBWorkID)10955564(PQKB)10715388(OCoLC)698585507(MiAaPQ)EBC3014322(IMF)WPIEE2006265(EXLCZ)99336000000044395820020129d2006 uf 0engur|n|---|||||txtccrWhat’s Driving Investment in China?Washington, D.C. :International Monetary Fund,2006.1 online resource (41 p.)IMF Working Papers"November 2006."1-4518-6525-2 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. RECENT DEVELOPMENTS IN INVESTMENT""; ""III. WHAT IS DRIVING MANUFACTURING INVESTMENT?""; ""IV. WHAT IS DRIVING REAL ESTATE INVESTMENT?""; ""V. CONCLUSION""; ""ANNEX I. INVESTMENT AND SAVING DATA BY SECTOR""; ""REFERENCES""Investment has grown rapidly in China in recent years, reaching more than 40 percent of GDP. Despite good progress on bank and enterprise reforms, weaknesses remain that could contribute to inefficient investment decisions. Manufacturing, infrastructure, and real estate have been the drivers of fixed asset investment. Econometric analysis presented in the paper suggests that manufacturing investment is strongly correlated with firms' liquidity, largely retained earnings. Analysis of residential real estate investment shows that it is weakly correlated with real household income growth and real mortgage interest rates. A policy implication of these findings is that reducing liquidity in firms, for example by requiring state-owned enterprises to pay dividends to the government, and using monetary policy to reduce liquidity increase real interest rates, would slow investment in manufacturing and real estate.IMF Working Papers; Working Paper ;No. 2006/265Investments, ForeignChinaSaving and investmentChinaFlow of fundsChinaInvestments: GeneralimfMacroeconomicsimfReal EstateimfIndustries: ManufacturingimfIndustries: Financial ServicesimfInvestmentimfCapitalimfIntangible CapitalimfCapacityimfHousing Supply and MarketsimfAggregate Factor Income DistributionimfIndustry Studies: Manufacturing: GeneralimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfProperty & real estateimfManufacturing industriesimfFinanceimfGross fixed investmentimfHousing pricesimfIncomeimfManufacturingimfSaving and investmentimfHousingimfPricesimfChina, People's Republic ofimfInvestments, ForeignSaving and investmentFlow of fundsInvestments: GeneralMacroeconomicsReal EstateIndustries: ManufacturingIndustries: Financial ServicesInvestmentCapitalIntangible CapitalCapacityHousing Supply and MarketsAggregate Factor Income DistributionIndustry Studies: Manufacturing: GeneralBanksDepository InstitutionsMicro Finance InstitutionsMortgagesProperty & real estateManufacturing industriesFinanceGross fixed investmentHousing pricesIncomeManufacturingSaving and investmentHousingPricesInternational Monetary Fund.Asia and Pacific Dept.DcWaIMFBOOK9910788693103321What’s Driving Investment in China3823260UNINA