ABSTRACT
Since the beginning of 1998, the central government has adopted various measures to expand the domestic demand and stimulate the economy to achieve the target of 8 percent economic growth. Household consumption is the origin and end point of the whole social production and investment. The stimulation of the economy should rely on stimulating both investment and consumption in terms of domestic demand. The stimulation of the economy by the public infrastructure industry mainly comes from government behavior. Four significant changes in the environment in comparison with the economic initiations are the changes in the market environment, system environment, employment environment, and international environment. The general thought on initiating the economy is to look for a new economically growing region instead of a new economically growing industry to gradually promote nationwide economic development and combine the industrial development with the regional economic development.
