Research On Cash Expenditure And Cash Regional Flow In Jilin Province(1996-2006)

Cash expenditure in a region , whether it is used totally or partly by itself or by other regions through cash flow in the end ,will ultimately affect the local industrial structure and economic development, thereby affect the adjustments of the total amount and structure of cash expenditure and return from circulation and structural.What is the rule of cash expenditure and return in Jilin province? Which direction does the cash flow obey from Jilin to other regions? To what extent is the cash used and made contribution by Jilin province?With these questions,we began our research.In this paper, with a review of the theoretical background of cash and the real background of cash expenditure and return in Jilin,we make a conclusion on the features and rules about cash expenditure and return.Based on the conclusion,we make a further analyze on the cash flow and the deep reasons, finally put forward to suggestions related.Through the analysis on the data of amount of cash and cash flow in Jilin province, we make the following conclusions:1. Aspect of net cash expenditure: the amount of net cash expenditure decreased. The Central Bank gradually reduced the volume of money supply. The factor of central bank in the money supply gradually weakened.2. Aspect of the stock of cash in circulation (M0): The stock and incremental of M 0 were increasing year after year. The demand of cash are increased. Transactions with cash are frequent.Under the background of the weakened factor of central bank in the money supply, this phenomenon shows that non-central factors in the money supply are increased, both the system of currency in circulation and the role of the market mechanism are strengthened continuously.3. Aspect of Net cash outflow: In this paper,we make a conclusion that up to 2006, part of cash in Jilin is outflowing to other regions. But the annual amount is decreased with an average annual growth rate of -19.1%. This shows that cash inflow is more than cash outflow. Part of cash can not be used by the province and can not serve the province's economic and social development, but were absorbed by other regions. However, the net outflow of cash is decreasing year after year. The Situation that cash used by other regions is improved.More cash is used by Jilin province and serve its development.The innovation mainly focus on the following aspects: 1.We have measured stock of cash in circulation in Jilin province between 1996—2006 . Based on the actual situation in Jilin,we add the proportion of agricultural population as an explanatory variables in the model.2.Based on the estimationon the cash outflow and analysis on the channels, we make a further analysis on the deep-seated reasons for the cash outflow.3.From the view of reducing the amount of cash outflow from Jilin Province and improving its adsorption capacity , we give some suggestions related.