Study Of Capital Investment Efficiency Of China And Its Influencing Factors

Since China’s reform and opening up, investment has made great promotion to ourcountry’s economic growth. The capital resources in China are scarcer than the laborforce and the natural resources. Under the constraint of scarce capital resources,improving the efficiency of capital investment becomes sufficient conditions for thelong-term and sustainable growth of economy. So, how is the efficiency of China’scapital investment? What’s influence of China’s capital investment efficiency under theenvironmental constraint? Measure and evaluate objectively on the efficiency of capitalinvestment in China, is not only the foundation of the government’s economicdecision-making, also leading the subsequent social capital investment, speeding up thetransformation of the mode of economic growth and innovation economy developmentmodel, it’s the necessary conditions for improving the quality of economic growth.Based on the review of domestic and foreign related research and theory, first usingthe perpetual inventory method estimates the capital stock of our country as a whole andeach unit at the provincial level, and analysis the current situation of the capitalinvestment of our country. Second, measure the efficiency of capital investment inChina and total factor capital efficiency under the restriction of environmentrespectively. Third, make empirical analysis and inspection of the factors that influencethe total factor capital efficiency. Finally, discuss the countermeasures to improve theefficiency of China’s capital. The followings are the basic conclusions of this study.First, China’s capital stock and fixed assets investment are growing every year.Fixed assets of urban and rural areas in our country, the industry and the regionalinvestment are all increasing every year, but there were significant differences in urbanand rural areas, the industrial and regional.Second, overall and urban and rural in China, three industry and the regionalinvestment rates are all in a rising trend, but the capital efficiency is on the decline. Andcapital efficiency exist significant differences between urban and rural areas, differentindustries and various regions.Third, regardless of the presence of environmental constraints, there are a lot ofinvalid capital investments in China, and overall capital efficiency is low; The easterncapital and capital utilization efficiency presents the highest technical level, central andnortheast having the biggest invalid capital quantity presents the minimum technical level, and is in a downward trend. The higher capital efficiency is mainly concentratedin the eastern province. Without environmental constraints, the efficiency of capital ofthe group at the forefront was higher than common frontier, and the capital efficiency inwestern is the lowest. With environmental constraints, the capital efficiency of China,the east and west in groups and under the leading edge are improved, but still on the lowside. The capital and capital utilization efficiency of technical levels in central andnortheast have dropped significantly, but the west has increased substantially.Fourth, regardless of the presence of environmental constraints, financialdevelopment, marketization level and the human capital has a positive influence on theefficiency of capital. The proportion of secondary industry has a negative influence onthe efficiency of capital. But financial expenditure was not significant effect on theefficiency of the capital.