Capital Flows To Our Country The Influence Of Regional Economic Development Gap

The disparity of regional economic in China has become an unavoidable reality andpressing issue. It is a fact that capital flows in different regions, so that the capitaldistribution is disproportionate, what also affects the disparity of regional economic;and guiding the factors flow rationally has become a popular research in regionaleconomics. So this paper aims at the new changes in the capital flow and regionaleconomic disparity in China, to research the relations between capital flow andregional economic growth, regional economic disparity.The paper provides an overview of the theory of capital, capital flow, economicgrowth and regional economic disparity; then divides1980-2009into3periods, andeach year use the average data of the provinces in the region, to analyse the dynamicdeveloping process and characteristics of the capital flows in the three regions,combined with the dynamic evolution of the developing disparity in the three regions,to analyse of the influence of capital flow on regional economic growth and theregional economic disparity, using regional capital panel data of different periods in31provinces to make the corresponding econometric model to empirical research onthe capital flows on three regional economic growth and regional economic disparity.According to the require of promoting the coordinated development of all regions,integrating with the effect of different capital flow channels, adjust regional economicpolicy, improve the mechanisms and channels of regional capital flow, in order toguide the capital flow rationally, make the capital combination and structurereasonable, strengthen regional economic cooperation, promote regional economicstably growing, narrow the regional economic disparity, finally to improve regionalrelations, build a harmonious socialist society.