The Coordinated Development of Investment and Consumption and Economic Growth of Henan Province

Expanding domestic demand and the inhibition of excessive investment has become an important issue for China.There are also overheated investment and insufficient consumption problems in Henan Province.This paper contrasts the consumption rate and investment rate of Henan Province to China's,the result shows the investment overheat and consumptive inadequacy of Henan Province is more serious.From the structure of investment,investment is too concentrated in the manufacturing sectors.The proportion of rural investment is relatively small.The effect of consumption on economic growth is greater than the investment.In the long run the effect is more obvious.It should actively expand the domestic demand,to curd overheating investment,make the investment of industry proportion and rural-urban ratio more reasonable in Henan.