The Analysis Of The Difference And Its Causality Between The Domestic And Foreign Capital Allocation Efficiency In Our Country's Manufacturing Industry

Since the reform and openness, no matter the total amount or the technical level of our country's manufacturing industry both has a very big development. At present, the total amount of our country's manufacturing industry has exceeded Germany's, and only less than America's and Japan's. The amount of our country's manufacturing industry now has ranked the third in the world. However, comparing with the foreign companies both in our country's manufacturing industry and the developed countries, our country's manufacturing industry still has a big gap to them nearly on every aspect. In order to change the disadvantage of the lack of profit-making ability and international competition ability thoroughly, the most crucial thing is to increase the competition and capital allocation ability of the domestic companies in our country's manufacturing industry.First, this paper reviews some relevant domestic and foreign theories, and points out the importance to study the difference of domestic and foreign capital allocation efficiency; Second, this paper defines some relevant terms in the field of the domestic and foreign capital allocation efficiency, and introduces the main study method and classification; Third, this paper applies Jeffrey Wurgler capital allocation thought and panal data model to economrtric the whole capital allocation efficiency, foreign capital allocation efficiency, and domestic capital allocation efficiency in our country's manufacturing industry,and meanwhile makes the empirical study on the short-term effect and long-term effect of the manufacturing industry's whole capital allocation efficiency, foreign capital allocation efficiency, and domestic capital allocation efficiency in our country. Though the above analysis, this paper gets the conclusion that the domestic capital allocation efficiency and quality are lower than the foreign capital allocation efficiency no matter on the whole or individual manufacturing industry; Finally, this paper analyzes the reasons that cause the difference between the domestic and foreign capital allocation efficiency from the aspects of financial market, governmental policies and regulations, competitive ability difference between the domestic and foreign companies. Moreover, this paper gives some...