| The regulation of the capital cannot be carried out immediately, for it is limited by its circumstances. But in some countries, the transfer of the capital could almost comlete in a short time without frictions, while in some other places; this could be a choking slow procedure. The fact of transferring the capital is allocation or reallocation of the capital.But why it's more efficient in some places? Or in another word, what on earth influence the capital allocation efficiency? This paper assumes that the market integration has certain influence on the capital allocation efficiency of manufacture industry. Then we try several methods to prove this assumption.This paper use the related production which many experts domestic and overseas studied in recent years in the subject of the capital allocation efficiency and market integration, to calculate the yearly capital allocation efficiency of our country's 27 provinces'(not include Guizhou, Tianjin, Xizang, Guangxi, for lack of data) 28 manufacture industries from 1996 to 2004, with the Arturo Galindo, Fabio Schiantarelliand Andrew Weiss (2005) model. On the basis of this, using the statistical software Eviews, we do the regressions between the provincial manufacture allocation efficiency indexes and the market integration indexes. Then we divide the 27 provinces into four areas, we do the regression analysis between the average capital allocation efficiency of the four areas and the average market integration indexes separately, we obtain that the market integration influence the efficiency of capital allocation in different levels .Finally, on the basis of the empirical study, we put forwards corresponding policy suggestions in country, regional and firm views. |
