Study On Capital Efficiency And Its Improvement Policies Since The Reform And Opening Up In China

The efficiency of the resources is an important issue in the fields of economics. Sustained economic growth depends on the sustained and high efficiency of the resources. As the basic resources of the economic growth, the capital's efficiency is of great concern. In particular, capital in our country is not affluent relatively. In recent years, many studies have shown that efficiency of resources in China is low as its economic development is accompanied by high investment and high consumption, and the capital is inefficient or ineffective.Based on the research achievements in capital and capital efficiency of scholars both at home and abroad, this paper empirically studies the capital efficiency in China with the time series datas and the panel datas, combining qualitative analysis with quantitative analysisThis paper, firstly, starts with the scale and distribution of the fixed asset investment, and analyse the contribution for the capital to China's economic growth. Then, the paper build the relative models and make empirical study of capital efficiency from the angles of capital input-output efficiency, dynamic efficiency and allocative efficiency, and analyze the impact on capital efficiency from the points of input and output. Finally, the paper gives some recommendations on on optimizing capital efficiency based on the conclusion of the study. The conclusions are as follow.Th current situaion is that the fixed asset investment increases rapidly since the reform and opening up, and overall size of the capital input expands quickly. However, there are disparity in the urban and rural area, in the eastern, central and western area, in three industries and in various of economic types. The factor endowment is that the ratio of capital to labour is rising. Contribution for the capital to economic growth is greater than that for labour.For the empirical study, generally speaking, China's capital input is efficient, but there is a downward trend and there are regional and sectoral differences. First of all, China's capital efficiency measured in input-output ratio is in the trend of decrease, and it is more effective in the rural than in the urban area. Secondly, the dynamic efficiency of overall capital is effective, but showed a significant declining trend from 2001. the dynamic efficiency is highest in northeast China, second in eastern and central, lowest in the western region. Thirdly, China's industrial capital allocative efficiency is low and volatile. There are disparities in allocation efficiency in various sectors within the industry, and it is low in traditional manufacturing and equipment manufacturing sectors, and it is negative in the eastern area, positive in central and weatern area. In addition, the allocative efficiency is higher in pricate sector than in the state-owned enterprise. As for the influencing factors, it primarily includes the non-balanced economic development, government policies, ownership, financial development, technological progress and human capital and so on.For the policies of optimizing the capital efficiency, this paper gives the folowing recommendations: we should establish the development concept that the scale and efficiency is equal. The government and market should play the dual role in optimizing the capital efficiency. We should emphasize scientific and technological innovation and promote capital efficiency with technological progress. We also have to speed up financial development , especially in rural area. enterpries should improve the capability in management and capital operation, and enhance their core competitiveness.