Research On The Capital Flow During The Economic Development Of Chengdu & Chongqing

As the basic factors of production, capital flows most frequently and plays a very important role in the development of regional economy. Especially in the poor regions, capital becomes the first-line force to promote economic development. Chengdu and Chongqing are the two biggest centre cities in the west, whose industry, resource, education, science & technology, finance and commerce are both advanced. How to take advantage of the tool of capital flow to develop economy of Chengdu & Chongqing is crucial. It is also the research task of this thesis.The significance of this thesis is to validate the capital flow' s important influence on the economic development in one region and the correlativity between the two by setting up the numerical model of GDP and capital flow, to compare Chengdu with Chongqing at the capital flow aspect by setting up the evaluation model of capital liquidity and the holistic level of capital flow and to state the policy of promoting to develop the regional economy high efficiently and healthily.This thesis makes the definition of capital flow, states the theories of international capital flow and domestic capital flow and compares development of economy and capital flow between Chengdu and Chongqing. Since 1997, Chongqing' s economic product is more than Chengdu in gross, and far less than Chengdu per person. In terms of capital flow, Chengdu meets inflow, while Chongqing meets outflow. The important contents of this article is to setting up the numerical model between GDP and economic development, the evaluation model of capital liquidity and the model of capital flow' s holistic level. According to the models: the factors of capital flow, which influence Chengdu' s economy most, are fixed assets investment and fiscal transfer payment, while the dominant factors influencing Chongqing' s economy is fixed assets investment. In addition, foreign investment has a notable influence on the development of economy. Both capital liquidity and capital flow' s holistic level in Chongqing are more advanced than in Chengdu. In the end, the thesis makes suggestions in terms of leading the capital flow to develop the economy of Chengdu and Chongqing.