A Comparative Research On The Mechanism And Efficiency Of Capital Formation

It has been proved that capital formation is the important source of our country's economics development on the condition of our countries'investment -promotion model.as a high-rate developing province,Jiangsu has a higher capital formation rate than Hebei. In this paper ,we'll find some differential of capital formation by Comparison on the inter_provincial capital formation between Jiangsu and Hebei ,and then reveal the principal source of causing the differingtial .such research ,out of question,will contribute to providing a best suggestion to improving hebei's capital formation.Capital formation is an organic entirety which is composed of three links,saving, investment and the transformation of saving and investment. They are linked together tightly. Then basing on it, I have aimed at the real conditions,the influential factors and the existing problems of the capital formation in the two province.This paper is organized as follows:Chapter 1 is introduction,include the paper's structure,significance and background。Chapter 2 is literature review.it briefly discusses the theory of capital ,capital formation ,the relationship between capital formation and china's economic growth.an important conclusion is that accumulation of capital is the most important factor to promote the economic growth.Chapter 3 is about the inter_provincial comparision of household savings.according to the comparative analysis,we find that not only income but also urbanization and it's different stage has remarkable influence on the household savings.furthermore,this influence is different between jiangsu and hebei.Chapter 4 is about the inter_provincial comparision of fixed assets investment.the data of jiangsu and hebei about investor and fund source indicate that the difference of two provincs'openning and liberalation extent lead to the obvious difference of invest formation.Chapter 5 is about the inter_provincial comparision of the financial mechanism of savings_investment transferming. We draw the conclusion that it is theFinance Lilberalation that play a role in the savings_investment transferming mechanism.the finally part give some conclusions and suggestions to hebei province's capital formation.as a whole, lower capital formation in hebei province (include inhabitant savings,fixed assets investment,and financial mechanism of savings_investment transferming) is the more crucial problem in hebei's economics development.According to the conclusions,we suggest that ,to hebei province,it is significant to promoting urbanization,liberalation and openning extent in the capital formation mechanism.I expect that my study will be helpful to solve the problems.