Research On The Optimal Capital Allocation Of Strategic Emerging Industries And Traditional Industries

After the global financial crisis in 2008,the traditional economic development model is not suitable for the requirement of the rapid economic development,in the past we rely on investment to drive economic growth,but it is no longer meet the needs of the development of long-term economic.In the face of new opportunities and challenges,all countries of the world are seeking a new way of economic development,our government stands at the heights of science and technology,and puts forward the development of strategic emerging industries which has great potential in the future.It has injected new vitality to the benign development of economy in our country.At present,the two transformations and upgrading of economic reform are mainly concentrated in the development of strategic emerging industries and the upgrading of traditional industries.Studies show that strategic emerging industries and traditional industries are coupling relationship and complementary to each other,they are not independent of each other.As capital and labor are limited,how to allocation the resources between the strategic emerging industries and traditional industries reasonably become the key to the development of strategic emerging industry rapidly.The purpose of this paper is to solve the problem of optimal capital allocation of strategic emerging industries and traditional industries,due to the effect of viscosity of the labor,this article discuss the optimal capital allocation problem from the short term and long term aspects.A production function of the emerging strategic industries and traditional industries is one of the most important assumptions,and it is one of the most important innovation points of this paper.This paper adds this innovation into the function of strategic emerging industries and traditional industries.In order to verify the correctness of the assumptions of the production function,this paper uses the dates of Liaoning province's to verify the correctness.Looking from the qualitative explanation and quantitative results,this article assumes of production function is reasonable.Of ellipsis in emerging industries and traditional industries in Liaoning province growth curve,the traditional industry presents the S-shaped growth,strategic emerging industries show exponential growth.If not considering the coupling relationship between the emerging industries and traditional industries,the capital transfer to strategic emerging industries is good,but that is not the case.Considering the coupling relationship between the two industries and seeing the two industries as a whole,the transfer of capital from traditional industries to strategic emerging industries created two effects: one is substitution effect of strategic emerging industry of traditional industry and the other is inhibition effect of strategic emerging industries of the traditional industry.These effects finally deduces the formula of optimal capital allocation between the two industries,this method of solving the optimal capital allocation is the Pareto optimal capital allocation method proposed in this paper.