A Study On China’s Regional Capital Allocation Efficiency And Influencing Factors

Due to a series of reasons like resource, factors of production and policy tilting, regional economic development has been in a unbalanced state, the economic crisis of the past few years to further highlight the problem. How to guide the capital of China’s eastern, central, western and northeastern region to improve the quality and efficiency of investment, has become an important economic development topic to discuss in recent years. Therefore, the paper use the China’s four regions-the eastern region, the central region, the western region and northeastern region as the research object, based on Wurgler (2000) efficiency of capital allocation model, study from2000to2010of the overall efficiency of capital allocation trends, the regional capital allocation efficiency, and analysis of the economic factors that may affect the overall as well as the regional capital allocation efficiency.The results show that our ten year capital allocation efficiency was a fluctuated upward trend, but the overall efficiency of capital allocation is lower than the capital allocation efficiency of the developed countries, in the regional capital allocation efficiency, the highest in eastern, western Secondly, the middle region third and the lowest is northeastern region; levels of human capital, the level of openness, the level of urbanization are positively related to the eastern capital allocation efficiency, the level of opening up and urbanization and the central region capital allocation efficiency are positively related, the raise of the level of the human capital of the western region can effectively facilitate capital allocation efficiency increased, and the nationalization and the level of financial development will inhibit its raise, the northeast region of the capital flows mainly rely on local state-owned capital, resulting in the northeast region of the capital allocation efficiency is lower than the other three regions.Therefore, this article makes the following recommendations:reducing government intervention in the economy more developed regions, while relatively backward regions to increase the government’s infrastructure investment; improve the quantity and quality of foreign investment, increase of capital management, technology introduction; at the same time to reduce the proportion of state-owned capital investment, to rely more on the region of the state-owned economy to improve the efficiency of state-owned capital; improve the investment environment, improve the operational efficiency of the financial mechanism, deepen financial reform; coupled with the process of urbanization, creating second and third tier cities investment environment.