An Empirical Study On The Impact Of Financial Development On Capital Allocation Efficiency In Guangdong Province

Capital is an important source of economic growth and plays an extremely important role in the economic development and growth of a country or region.Improving the efficiency of capital allocation plays an important role in promoting industrial transformation and growth mode transformation of a country or region.The "13th Five-Year plan" clearly pointed out that China's economic development needs to focus on improving the quality and efficiency of development.Therefore,optimizing capital allocation and improving capital allocation efficiency are of great theoretical and practical significance for realizing industrial upgrading and regional coordinated development.According to the theory of modern financial development,the development of the financial system can promote the long-term economic growth by promoting the accumulation of capital and improving the efficiency of the allocation of resources.The financial development is very important to the efficiency of capital allocation.The function of the financial market is to realize the optimal allocation of capital.The higher the efficiency of capital allocation,the better the financial development.As the leading province in China's economic and financial development level,the amount of capital accumulation in Guangdong province is much more abundant than other areas,which can represent the advanced level of financial development in China.On the basis of studying the mechanism of financial development promoting the efficiency of capital allocation,this paper refers Jeffrey Wurgler's model of capital allocation efficiency calculation and combined with relevant statistics of Guangdong Province,then takes empirical researches on the capital allocation efficiency of Guangdong Province and the impactions on capital allocation efficiency caused by financial development of Guangdong Province,in order to analyse the capital allocation efficiency and the degree of financial development of China's economically developed regions from a regional view.This study shows that the average capital allocation efficiency of Guangdong province from 2001 to 2016 is 1.243,and financial development can improve the efficiency of capital allocation to a certain extent.The financial development of Guangdong province is mainly manifested in the rapid increase of total capital,and there is still much room for improving the optimal allocation of capital.Finally,according to the conclusion of this paper,we put forward corresponding suggestions for financial development and capital allocation in Guangdong Province,hoping to improve the efficiency of capital allocation.