Theoretical And Empirical Research On Difference Of Capital Deepening

Neoclassical economic growth model thinks that per capita capital will remainunchanged in economy equilibrium and capital deepening is convergent．But in Chinareal economy，convergence of capital deepening is not strong．That the huge gap of percapita capital among regions、rural and urban、industries caused by difference of capitaldeepening results in uneven allocation of capital among workers has major impact on aseries of the most important economic variables including production， incomedistribution，imployment,and etc.Based on these, from difference of capital deepening，the dissertation focuses on formation mechanism of difference of capital deepening andthe theoretical relationships between difference of capital deepening and economicgrowth，income distribution，employment.This research has great theoretical andpractical significance.The main contents：①To define difference of capital deepening，analyse internaland external reasons、formation path of difference of capital deepening，measure andevaluate difference of capital deepening，in order to provide theoretical basis and database for latter chapters；②Based on the Cass-Koopmans-Ramsey optimal growth modelwith two sectors，analyzing the relationship between difference of capital deepening andeconomy growth、employment and urban-rural income gap，and carrying out empiricalanalysis with1978-2010panel data in China；③From internal and external reasons，studying formation mechanism and reasons of difference of capital deepening，andanalyzing empirically the relationship between regional and industrial difference ofcapital deepening and their correlative variables with1978-2010data in China；④Fromsuppressing difference of capital deepening and promoting balanced distribution ofcapital，the dissertation has built a new regulatory mechanism of difference of capitaldeepening in China．The main conclusions：①Theoretical and empirical analysis shows that therelationship between difference of capital deepening and economic growth is negativemonotonously, excessive difference of capital deepening damages sustaining economicgrowth．At the same time，higher difference of capital deepening is corresponding tolower balanced per capita capital、consumption and higher speed of economicconvergence；②Through squeezing the capital and income share of rural areas、makingrural labor force idle and suppressing non-agricultural development，difference of capital deepening expandes urban-rural income gap and becomes important foundationreason resulting in urban-rural income gap．The empirical analysis verifies that inaddition to increased urbanization rate can narrow urban-rural income gap，investmentrate、proportion of state-owned enterprises、 inflation and other factors shows the sameeffect of expanding urban-rural income gap；③Difference of capital deepening curbsemployment growth through direct and indirect functions mechanism． Empiricalanalysis verifies that along with difference of capital deepening expanding， theemployment growth rate significantly is reduced． Employment is positive correlatedwith capital price and technology investment，and real wages is not related toemployment. It is found that difference of capital deepening has been the major keyfactors holding up employment growth；④Considering from external causes，the fiscaland financial policy is the most important institutional factors resulting in difference ofcapital deepening，and it is fiscal policy、financial policy、industrial policy、regionalpolicy and other factors causing difference of capital deepening．Empirical analysisshows that regional difference of capital deepening is positive correlated with totalfinancial expenditure、relative size of credit、endogenetic rate of financial system、foreign direct investment and proportion of state-owned economy，being negativecorrelation with relative size of financial system；⑤Considering from internal reasons，different capital price、wages and technological progress are the internal factorsresulting in difference of capital deepening．Empirical analysis conclusion reveals thatcapital price、wages and technological progress changes per capita capital internally，and industrial difference of capital deepening expandes with industrial difference ofwage expanding．In order to solve the problem of too large difference of capital deepening，and tonarrow per capita capital gap among regions、rural and urban、industries，the thesismakes some policy suggestions including promoting capital balanced using and unifiedwage formation, improving commercialize degree of capital allocation，energeticallydevelopping capital saving technology，effectively eliminating technology gap，and soon．①we should increase macroscopical adjusting on capital allocation，maintainappropriate proportion between capital intensive industries and other industries，andenhance capital share of the small and medium-sized enterprise，agriculture，rural areas，and farmers．Based on factor endowment，innovate industrial policy，control excesscapacity，guide capital equilibrium distribution；②Through the establishment ofeffective and integrated capital market，form national unified capita price，improve commercialize degree of capital allocation．Through the establishment of integratedlabour market covering all regiones，urban and rural，entire enterprises and industries，forming national unified capita wage，clearl labor market relying on wages；③Increasescience and technology investment，vigorously develop capital saving technology，strengthen flow and share of technology achievement， effectively eliminatetechnology gap，promote common improving of specialization level；④Through reverseregulation of fiscal expenditure and taxation policy on capital investment，financialpolicy should play more important role on balanced investmen．Innovate financialpolicy，enhance competitiveness of financial market，execute different finance policy，promote financial resources balanced allocation；⑤Develop area comparativeadvantage，Perfect main function zones planning，improve regional division of labor andcooperation level，promote regional coordinated development．Coordinate developmentof urban and Rural affairs，eliminate different system of urban and rural，increase theliquidity of rural collective land，gradually realize the integration of urban and ruralareas．...