Chinese investment driven by output and profitability, not interest rates or elections.
The article analyzes what factors influence investment in China from 1980 to 2009. They used a regression model to test different theories and found that investment is positively related to output and profitability. However, factors like real interest rates and government leadership elections did not show a significant impact on investment. The study also calculated how sensitive investment is to these factors and suggested some policy changes for adjusting investment in China.