Its Regional Flow Of Capital Across Economic Impact Study

Since the reform and opening, the regional flow of factors of production is more andmore frequent, and trans-regional flow of factors of production has become one of theimportant factors that affect the regional economic development, with the gradualimprovement of the regional economic degree of opening to the outside world in ourcountry. Capital，as one of the important investment factor，plays a decisive role toeconomic development. Flowing of capital between regions, can drive the efficientallocation of other production factors, promote the regional economic growth and theindustrial structure adjustment effectively. Currently, the imbalance of the regionaleconomic development is one of the basic national conditions of China, in fact, startingfrom the eighth "five-year", nation has been committed to promoting the coordinateddevelopment of regional economy. Whether capital, as one important factor of affectingregional economic and finance stability, can be effectively controlled and utilized, is one ofthe keys to solve the coordinated development of regional economic. Thus it is necessaryfor us to do in-depth study on capital flowing and its economic affecting.Firstly, this paper comb through the domestic and foreign theory research and therelated concepts of the regional capital flow, then analysis the current situation of regionaleconomy in our country through the statistical data from1997to2010. At the same time,analyzing the status quo and characteristics of China’s capital flows across regions frommulti-angle and multi-level, through researching on the capital flow indexes of the grosscapital formation, capital efficiency, scale and direction of capital flows and capitaldistribution in the circulation channels. Then, on the basis of the above study, this paperanalyses the relationship between the regional capital flow and economic development byestablishing the panel data model. Come to the influence on the economy of the regionalcapital flows in China’s four big tectonic plates and eight economic regions, and find thecapital flow factors in each region, which has significant impact on economicdevelopment.The reseach results shows that, the scale of regional capital flows of our countryshowed a increase trend year by year, but the regional distribution is imbalanced. The basicdirection of the capital flows is from west to east. Capital flows has positive correlationwith regional economic development, and the gross capital formation and the total fixedassets investment has more significant impact on the economy. The research conclusionhelps to guide and control the capital flow between different regions, promote the coordination and stable development of regional economic and financial, which hasimportant theoretical value and practical significance.Of course, this thesis remains to be improved. Capital flows across the region oftenpresents different characteristics in different period, and also the economic effects ofcapital flow. Therefore, the research conclusion will be more perfect if we do deepresearch on the economic effect of capital flows from time dimension in different period.