The Study On The Industrial Efficiency Of Capital Allocation In Hubei

Hubei Province in central China played a central strategic fulcrum position. Optimizing the industry structure is an efficient approach in the different approach speeding up economic. Improving the efficiency of capital allocation is the core in optimizing industry structure and speeding up economic. Therefore it is important to research the capital allocation efficiency for the economic development. This paper studies on the industry efficiency of capital allocation and the contribution of different capital in economic growing, exposure the status of the capital allocation efficiency and capital expending. Then bring forward how to improve the capital allocation efficiency and economic growing.The paper also studied the capital allocation efficiency, established a linear regression model and put the empirical analysis using the statistical data from Hubei Statistics Yearbook 1995-2004. Longitudinal comparison to Wuhan city and the National, with the expansion of the regional capital distribution efficiency is lower. Hubei province horizontal compared with Henan province, Hubei industry efficiency of the capital allocation volatility smaller, while Henan industry efficiency of the capital allocation larger fluctuations. Through the analysis of the efficiency of the capital allocation the first five and the last five common characteristics, found that the provinces high efficiency of the allocation of capital industry was mainly due to focus on the more well-known enterprises or sectors of modern industries such as the electrical and electronic industries. And less efficient allocation of capital industry retains large state-owned enterprises were poor economic results. Researched funding sources for economic growth, established a multiple linear regression model, and exposed the contribution of various sources of funding to the economic growth. Comparison with the National drawn that the self-financing funds to economic growth was the biggest contribution, contribution of domestic and foreign loans to the economic growth was smaller. Finally, according to previous empirical research, make two recommendations to improve the efficiency of the allocation of capital of Hubei Province: strengthen the reform of enterprises, forming an effective supervision mechanism in enterprises, thereby improving the economic efficiency of enterprises; market funds provide an effective mobile channel and improve the laws and regulations to protect the interests of investors.