Research Of Regional Capital Flows And The Economic Spatial Differentiation In Jiangsu

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. Along with the deepening of market economy and the transfer and adjustment of regional development strategy, the scale, direction and speed of regional capital flow are constantly changing. However, for a long time, in the study of the problem of capital and economy, the leading economics have ignored the problems of space in economics, which can’t obviously interpret the real regional economic problems. In 1990s, the Theory of Spatial Economics represented by Krugman incorporated the spatial dimension into the analytic framework, thus providing the research methods and theoretical foundations for the study of regional capital flow.Regional capital flows brought regional economy forward, however, unbalanced the development space. The development plan describes the support of Jiangsu province to accelerate the built the coastal area, published by Chinese State Council in June 2009, raised the coastal development as a national economic strategy. Thus, the development space of Yangtze River Delta can be expanded, becoming a development triangle which consists of Shanghai, south and north shore of Yangtze River, south and north of Jiangsu. In this context, exploration the relation of regional capital flows and the economic spatial differentiation is an essential factor for Jiangsu province and the Yangtze River Delta region development.This essay emphasizes literature analysis in the first place, and adopts the spatial economy theory. The FC model used as an analysis method in order to find out the intrinsic factor between regional capital flows and economic spatial differentiation. And then this essay defines the economic spatial differentiation. In the second place, the current capital flows situation of the three regions of Jiangsu is analyzed, CV analysis and Theil Index are used to explain the spatial differentiation. In the third place, the method of Panel economic model and spatial economic model are used to test the correlation of these related factors. In the end, the regional capital flows is a positive factor contributes to economy growth. As well as a spillover effect abstained. Some political suggestions are suggested for government according to the current development of Jiangsu province.