Research On The Impact Of Capital Flow On Regional Economic Growth

Economic growth is inseparable from factors of production such as capital and labor,and factors of production in a region can be obtained not only from within the region,but also from outside the region,which involves capital flows.Factor of production flows into other regions through capital flows,so capital flows will have a significant impact on the development of regional economy,although it can develop regional economy.There are many factors affecting the development of the exhibition,but the capital flow is one of the important factors in both the degree and the time of the impact.This paper mainly studies the impact of capital flow on regional economic growth.At present,China has the basic situation of unbalanced economic development in the eastern,central and Western regions.The flow of capital between different regions and industries can not only optimize the local industrial structure,but also make the distribution of production factors such as labor more reasonable.In addition,it can promote economic growth.Therefore,the effect of capital flow among regions on regional economic development is studied.Only can we have a more in-depth understanding of the impact of capital flows on regional economic development,but also can we better formulate measures to promote the coordinated development of regional economy.This study elaborates the related theories of capital flow promoting economic growth,including McDugar Model and Stage Theory of Investment Development.On the basis of these theories,it makes an empirical analysis of the impact of capital flow on regional economic growth.When choosing explanatory variables,it starts from two angles of market and government,and adds control variables,i.e.the level of industrial structure upgrading and the city.The level of urbanization makes a more comprehensive analysis of the impact of capital flows on the economic growth of the three major regions in China.After theoretical and empirical analysis,this paper combines with the current situation of capital flow in China.In the last chapter,according to the results of the above analysis,some suggestions are put forward to enhance the role of capital flow in promoting regional economic growth.They are to increase investment in the central and Western regions,to promote the development of capital markets in the central and Western regions,to promote the introduction of foreign capital in the central and Western regions,and to promote capital among industries.Reasonable allocation.Based on the analysis of the empirical results,the following conclusions are drawn: capital flows among different regions will indeed affect the growth of regional economy,not only that,but also other factors of production besides capital.Because of the profit-seeking nature of capital,it will flow to the region with faster economic development,that is,to the eastern region,which will further the Eastern region's economy.Development provides favorable conditions,but this will further widen the gap of economic development between the east,the West and the central regions,and make the regional economic growth unbalanced.So if this phenomenon wants to be alleviated and improved,it needs the government's intervention,play the role of government macro-control,guide the capital flow,and make the regional economic growth more balanced.