Capital Flowing And Exploration Of The Western Region

The PCCC made out a plan of exploring the Western Region in 1999 This is not a regional exploring plan but a great strategy related to the development of all the country in the 21st century This region concludes chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shanxi, Ganshu, Qinghai, Ningxia and Xinjiang It has an area of about 54 billion km2 and is equal to 52 percent of all the area of China There are 285 million people live on this region and are equal to 22 84 percent of all the country But the GDP of Western Region is only equal to 3 0-70 percent of all the GDP in China The economy developing level is too low which serves as a foil to the proportion of people and area The exploring of Western Region is touched upon such areas as politics, economy, culture, circumstance and regional develepment, but the nucleus is related to capital Capital:s the first motive force of economy growth and the in-flow of capital is the first conidition of western exploration Since 1 990s, with the re-adjustment of governments regional policies, the capital supplying couditions have been improved to some extent But the conditions in the Eastern Region is greatly better that that of the western Region So, with the declining of rate and the improvement of capital market, a great deal of capital has flowed from the seek profits Thus, in the course of developing the Western Region, how to deal with this contradiction of capital flowing, and how to abstract the capital to flow into the Western Region are appear very important The article is related to such knowledge as International Capital Flowing Theary, Regional Economics. Compared Profits Theory, and Cost-income Analyse It starts from capital's natural instincts, and expounds the capital's seeking profits──capital in the market oriented economy only flows to areas of higher compared profits In the same time, the article draws lessons from International Capital Flowing Theory and Compared Profits Theory After analysing the historical variation and present of international capital flowing, it makes use of the analysing to explain the capital flowing in one country and tries to find the law of capital flowing Then it expounds the law and puts forward model The model holds that the difference of capital rate in different areas makes the direction and discharge of flowing differently, and influences the capital supply in different areas Yet the rate in one area is determined by the contrast between the costs and incomes of capital flowing and also determined by other factors After deeply analysing the reasons and conditions of capital flowing, it gets the conditions and areas of capital flowing After detailed sorting out, calculating, analysing the related numbers in relation to the capital flowing between the Western Region and the Eastern Region, the article finds the problems existed in Chinese capital flowing between the western and Eastern Region, and explairns their reasons Then it achives that we should cultivate the Western Capital Market positively, re-organize financial an monetary policies, finance and taxis policies, investirg policies, and enlarge the scope of opening to the foreign countries The article can be divided into four factors Factor one it introduces the study target, study methods, study, contents, study significance, and new viewpoints, thus foreshadows the following contents Factor two after examining the definition and category of international capital flowing, it probes into its historical varlatian and its present condition, and gives a general explanation...