In The View Of Factor Endowment Theory, The Development Of Gansu Capital Market

The development of industrial structure and economy level in a country or a region all depend on the changes result of factor endowment theory system, which is pointed to the certain proportion between the capital sum and the labors number, also which can be called as artificial capital . The industrial structure changes with the development of the factor endowment structure . With the increase in Capital Corporation, the capital scarcity can jump out of the hard situation because of the feasibility to develop the capital density industries.Because the structure changes of the factor endowment system decide the structure changes of the financial system and its responding contents. At different developing period, the factor endowment structure changes differently, and the financial system will adjust itself towards the demands of such changes. The right financial structure is the one that can satisfy different industries and the demands of financing. Followed with the factor endowment structure changes, the responding changes at financial structure lead to the various ways of the best superior financial structure at different period.Enterprises have various demands on the financial services, but the right financial structure should meet these demands on time, which make it available to achieve the effective assignment on resources. The basic value and function of modern financial system is to accumulate and assign capital. The efficiency of capital assignment is based on the efficiency of financial system. Only as the capital fund be put into the most competitive industrial lines and departments, can the financial system itself get rich reward continually and get the motive power to enhance itself.Just when the strategy of economy development and the policy of industries adjust to the advanced principle of essential quality system, the essential quality structure can get improvement by the development of competitive industrial lines and so the region capital market in Gansu can get impulse to develop its own building. Conversely, the region capital market's development in Gansu also should comply with the advanced principle of factor endowment structure to develop the relative advanced capital market at superior industrials. But in view of the growth of Gansu capital market and its qualities of the industrial structure, there is not enough showing on the advanced principle of factor endowment structure.The medium and junior enterprises means a lot to the economy development in Gansu, while their ways are quite limited about financing and their fund is quite short and serious, all of which have tightened their development closely. Therefore, the suitable capital market in this region has no choices but to be built up to satisfy the development demands of those medium and junior enterprises. The vital issue to build up such kind of capital market is to construct multiplied stock markets, to develop medium and junior banks, to grow the property exchange market and to cultivate the credit system and guarantee system for medium and junior enterprises.