Analysis On The Regional Diversification And Influence Factors Of The Industrial Capital Allocation Efficiency In China

It is the labor force,capital and production technology that will decide the extent to which the economic power of a country is to improve to.From the capital's perspective,the promotion of the economic growth refers to both the improvement of the capital amount and the rising of capital allocation efficiency.Given the capital amount of a certain country or region,the allocation efficiency and economic development level are positively related.Taking a look at the macroscopic angle,while we stimulate the economic development by monetary and fiscal policies,the diversification of capital allocation efficiency should also be taken into consideration.By balancing the capital amount of each region and industries,as well as improving the capital allocation efficiency,we will promote a balanced development among the whole country.Influenced by the geographic variation,population density,economical development starting point,and education degree,the capital,labor force and technology has always been tending to flow over into the developed area,which leads to the lack of capital of some kinds in the less developed area.Gaps of the development degree between areas are widening nowadays.China is now still in the start stage of economic development,huge fund investments are needed for both industry and infrastructure construction.It is far from enough if we narrow the gaps of economic development degrees among areas only by increasing spending.Economic increase refers to both the aggregation of capital amount and the improvement of capital allocation efficiency.Given the capital amount of China,it is of vital importance to improve the national or regional capital allocation efficiencies by all means to achieve a balanced and stable development of the country.Therefore,studies concerning the regional diversification and influence factors of the industrial capital allocation efficiency in China have the vital practical significance since they will promote the transformation of the pattern of economic development and the optimization of industrial structure,as well as accelerate the economic development in less developed areas.Based on the statistical data from 30 administrative provinces from 2000 to 2014 in China,this paper will estimate the industrial capital allocation efficiency by the Jeffrey Wurgler Elastic Coefficient Model for both the country as a whole and each region,respectively.In addition,we will study the convergence of the industrial allocation efficiency,and then we will proceed to the nest step to study the influence factors and their various efforts.This paper concludes five parts in total.Firstly is the introduction part,which introduces the background,meaning,research structure and innovations of this paper.Also,we will arrange relevant prior research concerning capital allocation systematically and thoroughly.Secondly is the explanation for some basic and relevant theories that relate to capital and capital allocation.This part will give a rough explanation on capital and industrial capital,and then explains the definition of capital allocation efficiency.Moreover,we will give a conclusive explanation to capital allocation theories developed by Adam Smith,David Ricardo,Heckscher,Olin and Marx,to provide a theoretical basis for the following research.Thirdly,we will introduce the capital allocation efficiency estimation model developed by Jeffrey Wurgler,which will provide technology and method support for the estimation of the industrial capital allocation efficiency in China.Later,based on the statistical data concerning the annually average balance of the net fixed assets and industrial added value of the 30 administrative provinces in China from 2000 to 2014,we will estimate the industrial capital allocation efficiency in China.With the estimated value,we will analyze the convergence of the capital allocation efficiency and provide data demonstration from the empirical analysis perspective,which will be a steppingstone for the influence factors analysis in the following parts.Fourthly,based on the former analysis in this research,we will make further analysis on the influence factors of the industrial capital allocation efficiency.We will first come up with some possible factors,such as the economic development degree,industrial structure,degree of economical opening,government administrative monopoly,degree of marketization and human resources level,and then apply quantitative index to these factors,set up a multiple regression model and input data into it to test it empirically.Fifth part is the conclusion part.In this part,we conclude the empirical analysis results in the former two parts and make a conclusion based on all these results.Then,we come up with some further relevant policy suggestions,such as accelerating the transformation of economic structure,promoting the introduction and utilization efficiency of foreign funds,improving the opening degree of trade,reducing government intervention,speeding up the marketing process and developing education vigorously.