The Western Development Capital Formation And Investment And Financing Countermeasures

This thesis reviews the capital formation theory of western development economics; demonstrates the important role that capital formation and capital accumulation play in the economic growth; discusses the instructive meaning of capital formation theory to large-scale exploitation of the West on the basis of the actual conditions. In this paper, I argue that one of the most important obstacles to the development of West is capital scarcity and insufficiency which is caused by unfavorable investing environment, serious capital loss, deteriorated regional trade conditions, obvious binary financial structure, unsound financial mechanism, etc. At last this paper analysis several error on investment and financing need to be rectified and puts forward the general principal principles that must be abided by in the Large-Scale exploitation of the West. Thus, this paper mainly discusses how to perfect financial mechanism and improve the distribution efficiency of capital. Then it puts forward a series of policy suggestion to accelerate capital formation and economic development in the West.