Research On The Effects Of Capital Flows To The Regional Economic Disparity In Shandong Province

The existence of regional economic differences is a product of the development of the economy,and it is an objective rule of economic development.Economic development cannot be separated from capital,labor,technology and other factors of production.The production elements needed for the development of a region can be obtained from the region and can be obtained from the external region through capital flows.Therefore,the flow of capital has a profound effect on regional economic disparity.There are many factors that influence regional economic disparity,but capital flows will be one of the important factors that affect regional economic gap,whether it is the length of time or the degree of impact.This paper mainly studies the impact of capital flows on regional economic development gap in shandong province.Capital flows are divided into government-led capital flows and market-oriented capital flows.Government-led capital flows mainly refer to the government's macro-control policies to guide capital with the purpose of financial transfer payment(FTP).The capital flow of market-oriented capital is mainly the spontaneous flow of capital from low-margin regions to high-margin areas,where the net deposit and loan of financial institutions(CD)fixed assets investment,foreign direct investment and capital market direct financing represent the spontaneous capital liquidity dominated by the market.In terms of the development of shandong province,the eastern coastal cities with Qingdao as the core are the top places in the economic development of shandong province.In recent years,the gap between the east and the west of shandong province has been gradually widened.The widening of these gaps has affected the development of the overall economy of shandong province.This paper mainly studies the relationship between the regional economic gap,the relationship between capital flows and regional economic disparities,and the relationship between capital indicators and regional economic growth.Firstly,based on mathematical model and theoretical research,the regional economic gap is reflected in the per capita income of the market,assuming that there are only two variables of labor and capital and the initial labor force does not flow.In the premise of only two markets and agglomeration effect,it is proved that the capital flow to developed regions will increase the gap between the two regions.On the contrary,the capital flow in developed regions will reduce the gap between regions.Secondly,based on the fact data of capital flows and economic development in two major regions of shandong province,the difference between the eastern and western regions of east and west of shandong province from 2000 to 2016 is represented by the difference of the average per capita income of the eastern and western regions of shandong province,and the correlation coefficient of investment in savings is obtained by using the improved f-h model.In general,the capital liquidity strength of western shandong province.Then,this paper explains the change of regional economic gap as explained variable,and the difference of the proportion of the government's transfer payments to the eastern and western governments in the whole province and the self-generated deposit and loan capital of the market as the difference of the whole province is the explanatory variable.It is concluded that the spontaneous capital flow in shandong province will increase the capital flow between the regions,and the government-led capital flow will narrow the gap between the regional economy.Once again,we do two different regions of GDP and the regression analysis of the various capital indices,and it shows that the GDP of different regions is affected by the capital flow indicators.The economic growth of eastern shandong province is the most affected by the deposit quota of financial institutions,while the western region is the most affected by the government transfer payment,and the western region has insufficient financing.The economic growth depends on the government financial support,which is unfavorable to the long-term economic sustainable development of the western region of shandong province.Finally,based on the above theoretical analysis and empirical test,it is concluded that there is an important correlation between capital liquidity and regional economic development gap,and that the market's autonomous capital flow will increase the gap between regional economy,and the government-led capital flow can appropriately narrow the economic gap between regions.Therefore,this paper makes Suggestions on reducing regional economic gap in shandong province,helping to attract financing and developing advantageous industries in the western region,and promoting the development of economic coordination and stability in shandong province.