The Industrial Investment Layout in China: A Data-Driven Study on the Balance between GDP, Employment, and Sustainable Development

Abstract

This paper presents a comprehensive mathematical modeling approach to determine how government investment in major Chinese industries should be allocated to maximize GDP, promote employment, and support sustainable development. The study begins with an exploration of inter-industry relationships, leveraging correlation and network analyses. We then develop theoretical models (from linear regressions to spillover-augmented frame-works) linking investment levels in different industries to their respective GDP outputs. Using optimization methods, we propose optimal allocations under two scenarios: (1) no limit on the number of industries to invest in, and (2) restricting the government to pick only three industries. These results are refined by incorporating employment objectives. We conclude with long-term policy recommendations on which sectors—particularly high-technology, green energy, and advanced services—should be prioritized to ensure steady wealth growth and strong employment rates.