What Is Regional Economic Development?

Regional economic development is an economic theory (development economics), first developed by the West. Regional economy refers to a production complex produced by the interaction of internal factors and external conditions of economic development in a certain region. A regional development entity that takes a certain area as a scope and is closely combined with economic factors and their distribution. Regional economy reflects the objective laws of economic development in different regions, and the interrelationship between connotation and extension. Regional economic development theories include: regional economic development gradient theory, regional economic development radiation theory, regional economic development growth pole theory, and regional economic development comparative theory.

Regional economic development

In the period from the founding of new China to the period before reform and opening up, in order to change the current situation of extremely uneven industrial distribution in old China, industrial construction was advanced to the Mainland on a large scale, including "

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Tian Shuhua: Use the capital market to promote coordinated regional development

02:29, August 29, 2011 Source: China Securities Journal

Author: Galaxy Securities Research Institute postdoctoral Tian Shuhua

The problem of imbalance in regional development has been a long-standing problem in China. Promoting the economic development of the central and western regions needs to solve the production factors and resources needed for the large-scale development. Among them, capital investment is a key factor. To form a large-scale capital investment, the best way is to use the promotion of the capital market.

There are many reasons for the large development gap between regions in China, but the uneven development of the capital market is an important reason for the large gap between the various economic regions in China. Comparing the development of capital markets in the four major economic regions, we can find that there is a significant imbalance in the development of capital markets in the eastern, central, northeastern and western regions.

In terms of the number of listed companies, there are 1,516 listed companies in 10 eastern provinces and cities, with an average of 151.6 listed companies in each province and city; 347 listed companies in 6 provinces and cities in central China, with an average of 57.8 listed companies in each province; There are 133 listed companies, with an average of 44 listed companies in each province; there are 348 listed companies in 12 western provinces and cities, and an average of 29 listed companies in each province and city. The number of listed companies in the eastern region is significantly higher than the number of listed companies in the other three regions.

From the comparison of the market value of listed companies, there is a phenomenon that the listed companies in the eastern economic region have the highest market value and the largest proportion, while the other three regions have smaller market values. As of the end of July 2011, the total market capitalization of listed companies in the eastern economic region (10 provinces and cities) accounted for 76% of the total A market value; the western region (12 provinces, municipalities, and autonomous regions) accounted for 11% of the total A market value; the central region (6 provinces) ) Accounts for 10% of the total A stock market value; Northeast China (3 provinces) accounts for 3% of the total A stock market value.

From the perspective of the average market capitalization of each province, the average total market capitalization of each province in the eastern region is 23.56869 billion yuan, the average total market capitalization of each province in the central region is 515.709 billion yuan, and the average total market capitalization of each province in the northeast region is 285.297 billion yuan. The total market value of each province is 273.429 billion yuan. On average, the eastern provinces are 8.62 times the western provinces, 8.26 times the northeastern provinces, and 4.57 times the central provinces.

From the perspective of the amount of funds raised in the regional securities markets, since the establishment of the securities market in China, the largest amount of funds raised in China's four major economic regions has been the eastern region, which raised a total of 192.333 billion yuan. The funds raised in the other three economic regions They are: 1.122.47 billion yuan in the west, 10.67.75 billion yuan in the middle, and 383.371 billion yuan in the northeast. It can be seen that the East has an absolute advantage. From the comparison of the amount of funds raised per capita from the four regions, the absolute superiority of the eastern region is still 40,900 yuan / person, followed by 0.352 million yuan / person in the northeast, 30,600 yuan / person in the west, and 20,999 yuan / person in the middle.

It can be seen that no matter from the total market capitalization of listed companies or the amount of funds raised in the securities market, there are obvious gaps in China's four major economic regions, and the eastern region is far ahead of other regions.

Promoting the economic development of the central and western regions requires the solution of the factors of production and resources required for the large-scale development. Therefore, capital investment is a key factor. To form a large-scale capital investment, the best starting point is to use the capital market to promote it. How to use the capital market to promote the economic development of backward regions, especially the central and western regions? We think the following aspects can be considered:

First, in terms of policy, the state gives care or preferential treatment to backward regions, especially the central and western regions. For example, under the premise of conforming to industrial development policies, companies in these regions can be given care in listing conditions, refinancing conditions, bond issuance, or other special policies; preferential policies can be given to corporate tax and investment in the central and western regions; and investment in the central and western regions The capital gains of listed companies are concessional in terms of taxation and so on.

Second, actively cultivate capital markets in the central and western regions. At present, there are only two securities trading markets in China, Shanghai and Shenzhen, which has seriously exacerbated the imbalance of regional distribution of funds. In the future, consideration should be given to the establishment of the Midwestern Stock Exchange, changing the situation in which China's capital centers are concentrated in the east, and creating financial centers in which financial resources are pooled in the midwest.

Thirdly, backward regions, especially the central and western regions, should actively cultivate and develop a reserve army of listed companies with good quality to support the enterprises in the region to enter the capital market. In the process of using the securities market to revitalize the regional economy, we must not only promote the sustainable development of existing listed companies, but also cultivate and develop a number of well-prepared listed company reserve forces so that local enterprises can continue to receive support from the capital market To provide fresh blood for the "central section" and "western section" on the securities market.

Fourth, intermediary institutions in the capital market, especially securities companies, must attach importance to developing capital market businesses in the central and western regions. It is necessary to make use of the capital market's financing capabilities, resource advantage allocation function, and mechanism conversion function to serve the development of the central and western regions.