What is industrial fixed asset investment and what role does fixed asset investment play in economic

Investment in fixed assets of industrial enterprises.

It is a comprehensive indicator that reflects the scale, speed, proportional relationship and direction of use of fixed asset investment.

Investment in fixed assets refers to the economic activities of building and purchasing fixed assets, that is, the reproduction of fixed assets. Investment in fixed assets is an investment in kind, and its undertakings are machinery, equipment, and buildings. The fixed asset reproduction process includes fixed asset renewal, alteration, expansion, and new construction activities.

Through the construction and purchase of fixed assets, the national economy has continuously adopted advanced technology and equipment, established new sectors, further readjusted the economic structure and the regional distribution of productive forces, strengthened its economic strength, and created material conditions for improving the people's material and cultural life. This is of great significance to the socialist modernization of the country.

Under normal circumstances, a construction project or an enterprise or institution can only belong to one national economic industry. In order to more accurately reflect the proportional relationship between various industries of the national economy, if the branches of the joint enterprise (head office) belong to different industries, in principle, the industries shall be divided according to the branches.

The proportion of fixed asset investment in GDP reflects the efficiency of investment and the degree to which the economy is dependent on investment. If the development of the economy is too dependent on the input of fixed assets, there will also be the problem of sustainable development.

According to the global data released by the World Bank, the proportion of fixed assets in GDP remains at about 23%. The proportion of China's fixed assets in GDP has risen from 30% in 1980 to 45% recently, indicating that there is a great correlation between fixed asset investment and economic development. It is precisely because of the continuous increase in the proportion of fixed asset investment that China's economy has been able to develop rapidly after the reform and opening up.

Among the G7 countries, Japan and Canada have fixed asset investment as the proportion of GDP to the world level, while Germany, the United Kingdom, France, Italy, and the United States have fixed asset investment to GDP as the proportion of GDP is less than 20%, which is lower than the global level.

Among the other G20 countries, Indonesia, India, South Korea, Australia, Saudi Arabia and other countries have fixed asset investment as a proportion of GDP higher than the global level; Brazil, Mexico, Russia, Turkey, South Africa and other countries have fixed asset investment as a proportion of GDP lower than the global level; Argentina's investment in fixed assets as a percentage of GDP is less than 20%.

Compared with developed countries such as the G7, China's current economic development is more dependent on fixed asset investment, but considering that China's urbanization ratio is low and the secondary industry accounts for a relatively high proportion, it is in the stage of transformation from agriculture to industrialization. It would be more meaningful if the G7 countries could compare the relationship between investment and GDP in the same stage of industrialization and urbanization.

The focus of China's future economic development is urbanization and the tertiary industry, and in this process, especially in the process of urbanization, the investment in fixed assets still plays a very important role in economic growth.

Investment in fixed assets is expressed in monetary form, the amount of work required to build and purchase fixed assets in a certain period of time, and the changes in the costs associated with it. Including real estate, buildings, machinery, machinery, means of transportation, as well as enterprises for capital construction, renovation, major repairs and other fixed asset investment.

Investment in fixed assets is the main means of reproduction of fixed assets in society. The amount of investment in fixed assets is the workload of construction and purchase of fixed assets expressed in monetary terms, and it is a comprehensive index that reflects the scale, speed, and proportion of investment in fixed assets, as well as the direction of making good grades.

The economic activity of building and acquiring fixed assets, i.e., the reproduction of fixed assets. The process of reproduction of fixed assets includes activities such as renewal of fixed assets (partial and full renewal), reconstruction, expansion, and new construction.

1. Investment in fixed assets refers to the process in which the investor advances money or materials to obtain fixed assets for production and operation or services. Investment in fixed assets includes investment in the transformation of existing fixed assets and the construction of new fixed assets. Since investment in fixed assets occupies a dominant position in the overall social investment, the investment that is usually referred to mainly refers to investment in fixed assets.

2. Fixed assets are labor materials and other material materials that can be used repeatedly for a long time in the process of social reproduction, and basically do not change their physical form in the process of use.

3. In China's accounting practice, the production and operation materials such as houses with a service life of more than one year, buildings, machinery and equipment, appliances, tools, etc., are regarded as fixed assets.