The Influence Of Capital Flow On Regional Economic Disparity

Since the reform and opening up,China's economic transformation from government regulating the economy to market deploying resources.The market has played a leading role in the process of economic development.The flow of production factors between different regions has changed from government guidance to market self-regulation and the flow of production factors will result in the reconfiguration of resources.In the process of the flow of production factors,the flow of capital is an important part of it.Different region can effectively achieve financing through capital flows and other resources can be redistributed,thereby increasing the efficiency of resource allocation and promoting economic growth.At this stage,the economic development in the regions of eastern,central,and western of China is uneven.This has also become a basic national condition of our country.At the meeting convened at the 19th National Congress,China also put forward the concept of "regional coordinated development".The free flow of capital across regions and industries can effectively promote the rational distribution of other factors of production in different regions and in different industries,thereby stimulating local economic growth and improving the local industrial structure.Therefore,researching and analyzing the free flow of domestic capital in different regions and its effect on the level of regional economic development can help understand the impact of capital flows on the level of regional economic development and take effective measures to promote regional development.This article expounds regional theory,regional development theory,regional unbalanced development theory,"growth pole" theory and cyclic cumulative causation theory,and uses these theories to empirically analyze the impact of capital flow on regional economic development.In the regression analysis,independent variables are constructed from the perspectives of finance,finance,and foreign capital.Control variables are constructed of the industrial structure,the level of human capital,and the level of urbanization.On the basis of theoretical and empirical analysis,combined with the current status of China's capital flows,reasonable proposals are given at the end of the article.Under the premise of theoretical analysis based on the perspective of regional theory and development economics,this paper makes an empirical analysis of the questions we have raised.Taking 29 provinces in China from 2006 to 2015 as samples,creatively constructing independent variables and control variables from multiple angles,we selected fixed effect model to return to the whole country and the eastern,central and western regions.According to the research ideas and research framework of this paper,the article can be divided into seven chapters.The first chapter is the research basis of the article,and it generally expounds the relevant background of the research,the article writing ideas and the innovation of the article.Chapter 2 mainly reviews and summarizes relevant concepts of capital flow,capital flow,and regional economy,laying the foundation for the follow-up empirical research.Chapter 3 makes a theoretical analysis of capital flows and elaborates the impact of capital flows on regional economic development from several levels.Chapter 4 analyses the flow of capital in different regions in recent years.Chapter 5 describes the selected samples and related data sources for empirical analysis in this paper,and constructs the index system required for empirical research,and establishes a regression model.Chapter 6 uses the fixed effect model to conduct empirical analysis and demonstrate the impact of capital flow on regional economic development.Chapter 7 describes the research conclusions and policy recommendations,mainly from three aspects:The first is to strengthen the capital investment in the central and western regions;the second is to promote the cultivation of capital markets in the central and western regions;the third is to increase the opening up of the central and western regions.