Author(s)

Jinxuan Yang

Corresponding Author

Jinxuan Yang

ABSTRACT

Among the factors that affect the regional economic development gap, capital is particularly important. In the short term, the level of economic growth is determined by the growth level of investment, consumption and import and export, while in the long term, the level of economic growth is determined by the investment growth of capital, labor and land and the level of technological progress. The flow of capital between regions is the basic form of realizing capital in the process of regional economic development, and promoting the reallocation of other production factors through capital, thus improving the efficiency of resource utilization. If the mobility of capital is conducive to the coordinated development of China's regional economy, capital should flow from areas with abundant capital to areas with shortage of capital, which is conducive to narrowing the regional economic gap. This paper discusses the influence of China's inter-regional capital flows on the economic growth of different regions and the changes of inter-regional economic differences, and puts forward some suggestions on promoting the inter-regional capital flows and promoting the coordinated development of the inter-regional economy.

KEYWORDS

Capital flow, regional economy, coordinated development