Impact Of Financial Opening On The Capital Allocative Efficiency Of Real Economy

In the process of national economic development,the development of real economy in any region requires the support and participation of capital.The huge driving effect of capital on regional economic growth is not only reflected in the continuous increase and expansion of quantity,but also in the continuous improvement and optimization of allocation efficiency.With the gradual expansion of China’s financial openness,financial openness will have two effects on the domestic economy: First,financial openness will help introduce more foreign capital into the real economy,thus helping domestic funds to enter the real economy and help promote “Financial services to the real economy”.Second,foreign capital introduced by financial openness may enter the financial sector more and not enter the real economy.The funds invested by the domestic real economy will flow to other countries due to financial openness.Therefore,financial openness will have an impact on the flow of capital,and may also lead to an imbalance between the real economy and the virtual economy.In order to study the impact of financial openness on China’s economy and make financial openness better serve the real economy,this paper explores the relationship between financial openness and the efficiency of capital allocation in the real economy from a macro level perspective,if financial openness improves the entity.The efficiency of economic capital allocation indicates that financial opening has prompted enterprises to invest more funds in fixed assets with the increase of assets.This will help alleviate the development of the two types of economic imbalances.Otherwise,it will help to increase the two types.In addition,many data show that China’s economy has obvious regional development imbalance,so it is very necessary to consider whether financial openness has significant differences between regions at the regional level.In the capital allocation efficiency model used in this paper,the total fixed capital formation and industry added value data of the real economy represented by industry in China’s 10 years 30(excluding Tibet)in 2007-2006,for the industry as a whole,the region The capital allocation efficiency is measured,and the empirical study of the economic capital allocation efficiency and regional differences.The empirical research shows that the capital allocation efficiency of China’s real economy is effective overall,but the overall level is low;the capital allocation efficiency of the eastern region is the highest,the middle is second,the western region is invalid,there are significant regional differences;further capital allocation The model is revised to introduce the intersection of financial openness and industry added value.By including the factors of government intervention,infrastructure,and openness as control variables,empirically test the impact of financial openness on China’s real economy capital allocation efficiency.Empirical studies show that financial openness significantly inhibits the efficiency of capital allocation in the real economy.The increase in financial openness has led to a decline in the efficiency of domestic real economy capital allocation,thereby increasing the imbalance between the two types of economies;in the eastern region,financial openness has significantly inhibited entities.Economic capital allocation efficiency,but in the relatively weak financial openness of the central and western regions,financial opening has no effect on the efficiency of capital allocation of the real economy,indicating that there is a significant regional difference in the role of financial openness in the efficiency of capital allocation.