Regional Development And Capital Markets

This paper mainly studies the interior relationship between regionalexploitation and capital market , and deals with conditions and ways ofpromoting regional exploitation through capital market ,on which it throwslight the place and roles of capital market during regional exploitation. Thispaper includes five chapters except leading argument , theoretical analysisis placed in the front three chapters, researching on case is done in thefourth chapter , some proposals are offered in the fifth chapter .The maincontents and arguments of each chapter are as follows:Chapter 1 General Theoretical Analysis on Regional Exploitationand Capital MarketThe course of regional exploitation is the course of regional economicgrowth. This chapter expounds the inter-dependence between regionalexploitation and capital market by analyzing the interior correlationbetween regional economic growth and capital market. It is on the generaldescription of relationship between regional exploitation and capitalmarket.On the whole, there exists interdependence between regional economicgrowth and capital market: on one hand , the formation and development ofcapital market are on condition that regional economic growth is to acertain extent ; on the other hand , the development of capital market canproduce great function in promoting regional economic growth..The reason of capital market's dependence on regional economicgrowth is that the formation of capital market depends on the increase ofper capita income and wealth of region . It is possible to realize theformation and development of capital market only when per capita incomeand wealth of region reach a certain "critical value". The increase of percapita income and wealth of region means regional economic growth ,therefore , regional economic growth determines capital market . Regionaleconomic growth 's dependence on capital market lies in , capital marketcan promote regional economic growth to a great extent by affecting savingrate , the rate of transformation from saving to investment and investmentefficiency of capital in the course of its formation and development .Especially in the early stage of regional economic development , theleading development of capital market ( supply-oriented development ofcapital market ) can cause more promotion to regional economic growth.The main reason is that the leading development of capital market canchange the component of unproductive wealth of less-developed region andtransfer resources from traditional industries to modern industries that canpromote economic growth and allocate resources on the most livelyprojects , especially when capital market can supply funds to risky initialcapital investment , the point is more apparent . So regional economicgrowth depends on the development of capital market under certainconditions. The relationship between regional exploitation and capital market tellus , in the course of exploitation of less-developed region, we shouldpromote actively the development of capital market on the base of knowingand respecting entirely the law of regional exploitation and capital marketdevelopment ,especially on condition that per capita income and wealthhave reached or neared a certain extent in the early stage of regionaleconomic development, we should promote the formation of good circlebetween regional economic growth and capital market developmentthrough the leading development of capital market, and accordinglypromote the exploitation of less-developed region. Chapter 2 Regional Exploitation Stage and Capital Market This chapter deals with the concrete relationships between regionalexploitation and capital market on the base of last chapter . This chapterdivides the development course of less-developed region into four stagesaccording to its development features, that is , the stage of preparing , thestage of starting , the stage of developing and the stage of integration , thenrespectively every link between regional exploitation and capital market ofevery stage . As the core of theoretical analysis in the paper, this chapter'smain points are as follows: 1. The exploitation of less-developed region is a continuous course ofdevelopment and can't have no support of capital market from beginning toend in the course .The main task of the stage of preparing is theconstruction of investment environment. In the stage, it is necessary toregard government investment as the lead and create advantages for marketoperating by public investment on a large scale. The function ofgovernment must depend on capital market (for example, issuing long termgovernment securities of construction) because of limited revenue. At thestage of starting, what we should do is to develop increasing pole throughthe innovation , especially, the investment can not exist without the supportof capital market. In this stage , we can say that it is the irrigation of thecapital market that hastens the success of innovation and the developing ofincreasing pole. The developing stage is the period for scale enlarging andincreasing pole forming capital market accelerates the forming ofincreasing pole through supporting economy of scale. During this period,the capital market and regional economy reinforce in a crew-like trend. Theintegration stage is the stage that results in the finish of regionalexploitation and the formation of the regional comparing advantages. Thecapital market conducts and promotes the regional corporation &diversion ,advantages supplement and the integration development by theregional capital distribution according to the profit rate of investment . Theintegration stage is also the stage for the amalgamation and irrigation of thecapital market and the regional economic development. In a word, capitalmarket is the inner variable of the regional exploitation and is the mainforce to decide and affect the regional exploitation. 2.During the process of regional exploitation, the function of capitalmarket is lasting, whereas the function of public finance is conductive andphased. That is to say, at the beginning of exploitation, the function ofpublic finance is dominant, and decreased gradually later. Therefore, in theregional exploitation of market economy, capital market is the dominantelement ,finance is the pre-dominant . Chapter 3 The Framework of Capital Market and RegionalExploitation This chapter analyzes the characteristics and outside conditions ofcredit market,securities market, non-securitizations property rightstransaction market in sequence, expounds their functions and necessaryterms needed in the regional exploitation. Chapter 4 Case Analysis : the Function of Capital Market in HainanExploitation...