Benefit Analysis of Fixed Asset Investment
Compared with other economic activities, the investment in fixed assets, its benefits are characterized by long-term, instability and indirectness. The following is my fixed asset investment benefit analysis for you, I hope it can help you, more content please visit (www.oh100.com/bylw).
Abstract: Whether the investment efficiency of fixed assets can be improved stably is closely related to the establishment of relevant indicators. At present, China's various measurement indicators for the efficiency of investment in fixed assets are not consistent with the current state of economic development. Therefore, it is necessary to improve the existing evaluation methods to be able to make a more comprehensive evaluation of investment efficiency. The article takes the definition and characteristics of fixed asset investment efficiency as the entry point, specifically analyzes the deficiencies in China's current evaluation of fixed asset investment efficiency, as well as puts forward some improvement strategies.
Keywords: fixed asset investment; investment efficiency; comprehensiveness
1 Overview of Fixed Asset Investment Efficiency
1.1 Definition of Fixed Asset Investment Efficiency
The economic efficiency of fixed asset investment, i.e., the ratio of the number of fixed assets invested in economic activities to the number of outputs of such assets. The ratio between the number of fixed assets invested in the economic activity and the number of outputs of the asset. When investing in fixed assets, the input of assets mainly includes the labor cost and material cost consumed in the process of construction and purchase of materials, as well as the cost of purchasing products and equipment. The output of fixed assets refers to the new assets generated by the investment in fixed assets, as well as the new productivity generated, and also includes the new profits and tax revenues generated by the investment in fixed assets. Can reflect the benefits of fixed asset investment indicators are divided into micro and macro. Micro mainly includes the duration of the project spent, the recovery rate of investment, the output value of assets and so on. Micro indicators can accurately reflect the direct information benefits generated by the investment, as well as the efficiency of resource utilization, that is, in the investment, the amount of resources consumed, as well as after the end of the investment, the resulting supply capacity. Macro indicators include the entire investment cycle, investment rate, investment effect coefficient, etc., focusing on reflecting the linkage between different construction projects, and the chain of benefits generated between them.
1.2 Characteristics of fixed asset investment benefits
Compared with other economic activities, the benefits of investment in fixed assets are characterized by long-term, instability and indirectness. From the macro level to analyze the benefits of the investment, including the initial input from the fixed assets, to the final output of the assets of the whole process; from the micro level to analyze, through the investment in fixed assets, so that the original assets to realize the value-added, but also to meet the various needs of the community. For example, the improvement of technology level, the improvement of people's quality of life, cultural life and so on. These changes can be seen in different ways and are reflected in the GDP of different regions.
2 Constraints on the Improvement of the Efficiency of China's Fixed Asset Investment
Fixed asset investment occupies a large proportion of social production activities. If the investment does not achieve a better return, it will inevitably affect the smooth operation of the entire social economy. Therefore, from this aspect, the statistics of China's fixed asset investment can bring the macroeconomic benefits, through the indicators to correctly reflect this value, has become an important way to monitor the economic development. But in practice, the efficiency of the measurement of the indicators, and the current trend of economic development does not match, there are still some drawbacks need to be further improved.
2.1 Benefit indicators do not reflect the full range of
In practice, the measurement of investment efficiency indicators focus on the construction sector in China. This measurement can only reflect the progress of China's fixed asset investment, but it is difficult to reflect how much economic benefit the investment in fixed assets has brought. Practically speaking, the investment in fixed assets presents the characteristics of long-term, diversified and phased, so it is not comprehensive enough to judge the economic impact of the investment only on the basis of a single project. Therefore, the evaluation of the investment efficiency of fixed assets should be carried out from multiple aspects, which can reflect the investment . Complexity, but also accurately reflect the impact of the investment behavior on economic output.
2.2 Benefit evaluation index is too static
As mentioned above, investment efficiency is a dynamic development process. In practice, China adopts the annual compilation of the next year's fixed asset investment efficiency indicators, which is obviously a static type of indicators, can not play a role in promoting investment, but also can not accurately reflect the efficiency situation.
2.3 Lack of adaptability of efficiency indicators
The lack of adaptability in the formulation of investment efficiency evaluation indicators refers to the fact that China's formulation of efficiency evaluation indicators will focus on investment and economic growth, focusing on the discussion of whether the investment in assets can help economic growth. But it ignores whether the investment in fixed assets can cause changes in economic variables. As we all know, the main purpose of investment in fixed assets is for economic growth, and economic growth provides more opportunities for investment. Improve the quality of the surrounding environment and so on, by evaluating these elements, are able to reflect the benefits achieved by the investment in fixed assets in China.
2.4 Evaluation results one-sided
At present, the evaluation of the investment efficiency of fixed assets is only discussed from a one-sided perspective, whether the investment has achieved good benefits, the relationship between China's economy can be steadily improved. In other words, if you want to more comprehensively monitor the current investment situation, comprehensively analyze the benefits of investment, strict management of investment, we need to use a quantitative approach to analyze the various elements of the investment, to find the factors that are closely related to the benefits of investment, to carry out focused research.
3 ways to improve the efficiency of China's fixed asset investment
3.1 Scale efficiency rational planning
The scale efficiency achieved by fixed asset investment can be carried out from the scale of this investment, as well as the help of this investment behavior on economic growth in two aspects. In other words, in a certain period of time, the scale of investment in fixed assets and the scale of socio-economic development at that stage, can promote the smooth and orderly development of the economy.
3.2 Correct definition of structural efficiency of investment
We can define the structural efficiency of investment from the perspective of resource allocation. In detail, we should explore the structural benefits from two aspects: dynamic and static. On the one hand, to analyze the structural efficiency of investment from a static perspective, we can understand whether the structure of the investment is scientific and reasonable, whether the resources have been effectively allocated, and whether there is a waste of some of the resources, and the indicators used in this process are? The indicator used in this process is the average variance of the marginal output benefit of the investment? On the other hand, from a dynamic perspective to analyze the structural benefits of investment, is a specific study of the changes that occur in the structure of the investment, will have an impact on other areas, other sectors of investment.
3.3 Grasp the wholeness of investment benefits
To analyze the benefits of investment from a holistic perspective, specifically from the quality, relevance, and direct benefits of the three aspects of research. First of all, the evaluation index of direct benefit is established through ? Real estate sales rate? The development of this indicator can reflect the relationship between the development and the final operating results in the field of real estate; finally, through the indicators of correlation benefits, looking for other elements associated with fixed assets, such as employment rate, environmental indexes, etc., to evaluate the benefits of investment.
4 Conclusion
In summary, when analyzing the efficiency of investment in fixed assets, it is necessary to carry out from multiple aspects to ensure that the evaluation of the comprehensiveness and accuracy, and to ensure that all resources can be rationally allocated through reasonable evaluation to promote the development of China's economy.
References:
[1]Zhao Yu, Chen Xiaojuan, Pei Lina. Analysis of the efficiency of fixed asset investment in Shijiazhuang based on 2003-2008[J]. Modern Business Industry,2010(15).
[2]Li Bo. Analysis of the Effect and Lagged Effect of Fixed Asset Investment in Hebei Province[J]. Journal of Hebei Normal University (Philosophy and Social Science Edition),2011(05).
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