Study On China's Regional Capital Flow Mechanism And Effect

Inter-regional unbalanced economic development is a notable characteristic of China's economy. The thesis makes the regional capital flow as its entry point.The thesis has an analysis of China's regional capital flow channel on the basis of the regional capital flow's general theory through qualitative analysis and empirical analysis. The thesis proposes the mechanism model of regional capital flow which shows that the unbalanced level of regional economic development, the development level of regional financial institutions, the development level of financial markets, the effects of financial and monetary policies and the opening degree are the main influencing factors of China's regional capital flow. The empirical analysis shows that eastern region's finance is the most developed and the mode of market-based capital flow is dominant in eastern region. At the same time, the empirical analysis also shows that the mode of market-based and government-led capital flow is dominant in central region; the contribution degree of intergovernmental fiscal transfer is the largest in western region; this reflects that at present the economic development of western regions mainly rely on national relevant support policies, the capital flow is government-led.From the analysis of effect of regional capital flow, first, causality exists between regional capital flow and its economic growth. Second, from the analysis of regional economic gap, China's regional capital flow differentiation displays as regional internal difference. Therefore, provincial analysis can better reflect the differences in the regional capital flow.The thesis suggests that the constantly improvement of the capital flow channels is the first of the improvement of capital flow mechanism. There are two ways to improve the regional capital flow mechanism. One is to guide the re-allocation of capital through the market's "invisible hand" and then improve the efficiency of capital flow, and the other one is to rely on government's "visible hand" and implement regional financial policy to guide capital flow through government fiscal transfer in order to achieve an equitable balance of equity and efficiency. At time, this thesis has an analysis on regional capital flow's risk problem. In particular, it points out that the credit risk along with the process of capital flows is the main one in China's regional capital flow's risk. Finally, it proposes, the fluidity, effectiveness and security of inter-regional capital flow depends more on regional financial ecological environment under the condition of market economy, especially when the preferential policies are ended, the quality of the regional financial ecological environment will determine the regional capital flow.