Research on The Correlation between Investments in Various Industries Based on Regression Model
Abstract
As China transitions to high-quality economic development, industrial structure adjustment has become crucial. Government investment, as a key tool of macroeconomic regulation, plays an important role in guiding industrial upgrading, optimizing resource allocation, promoting growth, and expanding employment. This study analyzes the relation-ship between industry-specific investment and GDP to provide a scientific basis for investment allocation. Using industry GDP data from 1990 to 2023, issues such as outliers, missing values, and unit inconsistencies were addressed to ensure data integrity. Pearson correlation analysis revealed that sectors such as industry, construction, manufacturing, finance, IT services, education, and healthcare are strongly linked to GDP growth. Based on the characteristics of each sector, linear or nonlinear regression models were developed to quantify investment impact. Under a total government investment constraint of 1 trillion yuan, an optimized investment plan was proposed using optimization algorithms like fmincon to maximize GDP. Analysis of historical investment proportions showed rising shares for IT services and finance, while agriculture and textiles declined. The findings demonstrate that scientific planning and optimized investment can effectively support industrial upgrading, improve resource efficiency, and promote sustainable economic growth and employment.
Keywords
industrial structure adjustment, linear regression, nonlinear regression, GDP
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