Since the reform and opening up, China's economy has experienced unprecedented rapid growth, in which social fixed asset investment, as a key driver, has contributed to economic development that cannot be ignored. This study focuses on the period from 2003 to 2022 and employs key economic indicators, including gross domestic product (GDP), fiscal expenditure, and total retail sales of consumer goods, to investigate the correlation between these variables and their impact on fixed asset investment. To this end, econometric analysis is utilized to elucidate the underlying mechanisms through which these variables influence fixed asset investment. The results indicate a positive correlation between fiscal expenditure, retail sales of social consumer goods and overall fixed asset investment. Furthermore, a negative correlation exists between GDP and fixed investment. This is due to the fact that an increase in GDP leads to an increase in total social consumer goods, which in turn reduces the funds available for investment. Consequently, a negative correlation emerges between total social consumer goods and fixed asset investment. This illustrates that fiscal expenditure exerts the greatest influence on social fixed asset investment, followed by GDP and total social consumer goods. The objective of this empirical analysis is to identify the key factors influencing China's fixed asset investment. The findings are intended to inform the formulation of more precise and effective economic policies by the government, facilitate the optimization of the investment structure, and support the advancement of high-quality economic development.
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