The Impact Of Institutional Spillover And Capital Input On Interprovincial-mutual Spillover Effect

China's regional economic innovation and development is particularly important in the global economy.Unlike those factor-driven and investmentdriven industries of low-end labor-intensive industries,innovation drive requires regional and industrial linkage,institution and functional mutually development,and the use of inter-provincial spillover effect to promote the joint development of regional economy.This paper constructs a Global Vector Autoregressive(GVAR)bivariate model and uses the panel data of 29 provinces(cities)in China.On the basis of fully considering the heterogeneity of regional interaction,this paper demonstrates the institutional spillovers in Shanghai,Wuhan and Chongqing,as well as the spatial spillover effects of institutional changes on economic growth.The research shows that the level of institutional spillover is positively correlated with the spillover effect of economic growth.Among them,the institutional spillover in Wuhan is remarkable,with high institution spillover adaptation efficiency,and the docking development policy between Shanghai and Anhui has achieved good results.The mutual spillover effect shows that the inter-provincial economic growth in the East has strong linkage,followed by the central part,and the western part is the weakest.In particular,the economic linkages between Shanghai,Wuhan and Chongqing are very weak.The application of the model in the Bohai Rim shows that the spillover effect of the center is weak and the factor allocation efficiency of the surrounding areas needs to be improved.Further the paper analyze factors that have effect on spillover effects by regression model,it is found that there is a positive correlation between capital(fixed assets)investment and spillover effect in this region,while foreign direct investment(FDI)has no significant impact on spillover effect in this region.The empirical results are helpful for planning regional economic innovation and development model,correctly understanding the development relationship between them,and promoting regional economic integration under the framework of institutional change and market economy.