Research On The Correlationship Between Dual Sturcture And Captial Allocation Efficiency

This paper tries to analyze the dual structural strength and development trend,by measuring 1978-2015 China's 30 provinces(except Tibet,Hong Kong,Taiwan and Macao),shandong,henan;sichuan can be found belongs to be the most prominent dual structure provinces among the eastern,middle and western areas.And then we use the C-D production function to calculate elasticity of capital output of the traditional departments and modern departments as well as the efficiency of capital allocation.Finally we explore the correlation between the transformation of the dual structure and the efficiency of capital allocation.The research shows that since the reform and opening up,the strength of the dual structure in the three provinces has been declining continuously,and the strength of the dual structure in Shandong Province has the weakest strength,followed by Sichuan Province and Henan Province.The development trend of the dual structure of the three provinces is different.The general trend of Shandong Province and Henan Province is the same,with great fluctuation and basically the same turning-point time.The overall trend of Sichuan Province is stable with little fluctuation.In addition,the capital allocation also shows the geographical characteristics.Shandong Province has the largest capital supply,followed by Henan Province and Sichuan Province with the least capital supply.However,the capital output elasticity and capital allocation efficiency of both traditional and modern sectors in Sichuan are greater than those in Henan and even beyond Shandong.The result of Granger causality test shows that the transformation of dual structure and the efficiency of capital allocation between the two departments show a two-way causal relationship between the dual structure transformation and the capital allo.cation efficiency in Shandong Province.However,the transformation of dual structure in Henan and Sichuan Provinces will promote One-way causation of the convergence of capital allocation efficiency between the two departments.