Research On The Influence Of Capital Flow On Regional Economic Difference In China

It is common phenomenon in the process of development of economy that development of regional economies is imbalance and different. That exists during the development of economy in both the developed countries and the developing countries because of the influence of nature, history, objective or subjective reasons etc. It was widely agreed by many researchers that, objectively, there are gaps between China's regional economies. There are many factors contributing to that problem: not only the economic basis of the regions, but also the different polices applied in each region since China's reform and opening up; not only the influence from the different geographic position of each region, but also the shift of thoughts and ideas of the local people. But capital factor is always playing an important role, which is the core of the theories of classical and new classical economy growth.This essay has analyzed the relevant theories of economic growth and regional economic difference and capital flow at first, dissected current situation between regional economic and capital flow in China; Then, analyzed how capital flow influences regional economic in china through the data over the years, Finally, this essay put forward the policy advice of promoting China's regional economic development in harmony in terms of capital flow.Capital flow is the major reasons regional economy difference in Chinese east, central ,west regional. Basing on current economic development of China, how to make capital flow more efficient, so that the capital, which pursing high profit reward, will move from the eastern area to the western area where capital is urgently needed to promote the development of economy, is a important step to resolve the problem of increasing economic gap between China's different regions.