Study On The Correlation Between Financial Development And Capital Allocation Efficiency In Gansu Province

Capital is an important financial resource.The accumulation ofcapital and its efficient allocation one of the important powers of financialdevelopment and economic growth. To promote capital allocationefficiently is one of important functions of financial institutions. Thehigher of the financial development,the better development of thebusiness and the industry, which come outs optimal allocation of capital.Since China put forward western development strategy,and Gansuprovince had experienced two“Five Years Plan”development,andfinancialassets had been unprecedented development.In the futrue,Gansu’seconomy develops need by means of financial assets to improve theefficiency of capital allocation.In these context,through correlationbetween financial development and capital allocation efficiency of GansuProvince,looking for the law,for the use of financial means to acceleratemarket system construction.It has the reality significance to promoteGansu’s economic growth.In this paper,according to the actual conditions of Gansu Province,Using the theory and empirical analysis method,research in therelationship between financial development and capital allocationefficiency.Through the analysis of financial institutions,financial marketdevelopment status in recent years,and using Jeffrey Wurgler model tomeansurement capital allocation efficiency of GanSu province.Based on the research,analysis the correlation of financial development and capitalallocation efficiency,got the conclusion is financial development andcapital allocation efficiency has a weaker correlation in GanSu province.At last put forward some countermeasures on developing financemarket,transformation of government functions and so on.