Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences

Du Yan; Lan Caihong

doi:doi:10.11648/j.ijber.20211004.12

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Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences

Du Yan, Lan Caihong

Published in International Journal of Business and Economics Research (Volume 10, Issue 4)

Received: 29 June 2021 Accepted: 12 July 2021 Published: 19 July 2021

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Abstract

Capital structure is an important factor in the formation of regional development differences. Based on the background, this paper selects panel data of 31 provinces (municipalities, autonomous regions) in China from 2006 to 2017, and uses a fixed-effect panel model to analyze the relationship between the capital structure and regional development differences. According to the results of empirical research, there is indeed a relationship between the capital structure and the formation of regional differences, that is, capital efficiency of different subjects varies in promoting economic growth in the eastern, central and western regions, while the economic growth of different regions has different attractiveness to different capital subjects, this kind of influence will last for one period after another. It is this kind of cyclic interaction that forms the "Matthew effect" of "the strong get stronger and the weak get weaker" in regional development. Therefore, based on the problems mentioned in this article, regions should implement policies to attract the combined flow of various types of capital in a targeted manner, narrow the gap in China's eastern, central and western regions development as much as possible, thereby optimizing the regional capital structure and better promoting the coordinated development of China's regional economy.

Published in	International Journal of Business and Economics Research (Volume 10, Issue 4)
DOI	10.11648/j.ijber.20211004.12
Page(s)	117-124
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Capital Structure, Capital Subjects, Regional Development Gap, Efficiency Difference, Attraction Difference

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APA Style

Du Yan, Lan Caihong. (2021). Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences. International Journal of Business and Economics Research, 10(4), 117-124. https://doi.org/10.11648/j.ijber.20211004.12

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ACS Style

Du Yan; Lan Caihong. Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences. Int. J. Bus. Econ. Res. 2021, 10(4), 117-124. doi: 10.11648/j.ijber.20211004.12

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AMA Style

Du Yan, Lan Caihong. Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences. Int J Bus Econ Res. 2021;10(4):117-124. doi: 10.11648/j.ijber.20211004.12

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@article{10.11648/j.ijber.20211004.12,
  author = {Du Yan and Lan Caihong},
  title = {Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {4},
  pages = {117-124},
  doi = {10.11648/j.ijber.20211004.12},
  url = {https://doi.org/10.11648/j.ijber.20211004.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211004.12},
  abstract = {Capital structure is an important factor in the formation of regional development differences. Based on the background, this paper selects panel data of 31 provinces (municipalities, autonomous regions) in China from 2006 to 2017, and uses a fixed-effect panel model to analyze the relationship between the capital structure and regional development differences. According to the results of empirical research, there is indeed a relationship between the capital structure and the formation of regional differences, that is, capital efficiency of different subjects varies in promoting economic growth in the eastern, central and western regions, while the economic growth of different regions has different attractiveness to different capital subjects, this kind of influence will last for one period after another. It is this kind of cyclic interaction that forms the "Matthew effect" of "the strong get stronger and the weak get weaker" in regional development. Therefore, based on the problems mentioned in this article, regions should implement policies to attract the combined flow of various types of capital in a targeted manner, narrow the gap in China's eastern, central and western regions development as much as possible, thereby optimizing the regional capital structure and better promoting the coordinated development of China's regional economy.},
 year = {2021}
}

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TY  - JOUR
T1  - Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences
AU  - Du Yan
AU  - Lan Caihong
Y1  - 2021/07/19
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211004.12
DO  - 10.11648/j.ijber.20211004.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 117
EP  - 124
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211004.12
AB  - Capital structure is an important factor in the formation of regional development differences. Based on the background, this paper selects panel data of 31 provinces (municipalities, autonomous regions) in China from 2006 to 2017, and uses a fixed-effect panel model to analyze the relationship between the capital structure and regional development differences. According to the results of empirical research, there is indeed a relationship between the capital structure and the formation of regional differences, that is, capital efficiency of different subjects varies in promoting economic growth in the eastern, central and western regions, while the economic growth of different regions has different attractiveness to different capital subjects, this kind of influence will last for one period after another. It is this kind of cyclic interaction that forms the "Matthew effect" of "the strong get stronger and the weak get weaker" in regional development. Therefore, based on the problems mentioned in this article, regions should implement policies to attract the combined flow of various types of capital in a targeted manner, narrow the gap in China's eastern, central and western regions development as much as possible, thereby optimizing the regional capital structure and better promoting the coordinated development of China's regional economy.
VL  - 10
IS  - 4
ER  -

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Author Information

Du Yan

School of Finance, Hunan University of Technology and Business, Changsha, China
Lan Caihong

School of Finance, Hunan University of Technology and Business, Changsha, China

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APA Style

Du Yan, Lan Caihong. (2021). Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences. International Journal of Business and Economics Research, 10(4), 117-124. https://doi.org/10.11648/j.ijber.20211004.12

Copy | Download

ACS Style

Du Yan; Lan Caihong. Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences. Int. J. Bus. Econ. Res. 2021, 10(4), 117-124. doi: 10.11648/j.ijber.20211004.12

Copy | Download

AMA Style

Du Yan, Lan Caihong. Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences. Int J Bus Econ Res. 2021;10(4):117-124. doi: 10.11648/j.ijber.20211004.12

Copy | Download

@article{10.11648/j.ijber.20211004.12,
  author = {Du Yan and Lan Caihong},
  title = {Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {4},
  pages = {117-124},
  doi = {10.11648/j.ijber.20211004.12},
  url = {https://doi.org/10.11648/j.ijber.20211004.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211004.12},
  abstract = {Capital structure is an important factor in the formation of regional development differences. Based on the background, this paper selects panel data of 31 provinces (municipalities, autonomous regions) in China from 2006 to 2017, and uses a fixed-effect panel model to analyze the relationship between the capital structure and regional development differences. According to the results of empirical research, there is indeed a relationship between the capital structure and the formation of regional differences, that is, capital efficiency of different subjects varies in promoting economic growth in the eastern, central and western regions, while the economic growth of different regions has different attractiveness to different capital subjects, this kind of influence will last for one period after another. It is this kind of cyclic interaction that forms the "Matthew effect" of "the strong get stronger and the weak get weaker" in regional development. Therefore, based on the problems mentioned in this article, regions should implement policies to attract the combined flow of various types of capital in a targeted manner, narrow the gap in China's eastern, central and western regions development as much as possible, thereby optimizing the regional capital structure and better promoting the coordinated development of China's regional economy.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Research on the Mechanism of Differences in Capital Structure Promoting Regional Development Differences
AU  - Du Yan
AU  - Lan Caihong
Y1  - 2021/07/19
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211004.12
DO  - 10.11648/j.ijber.20211004.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 117
EP  - 124
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211004.12
AB  - Capital structure is an important factor in the formation of regional development differences. Based on the background, this paper selects panel data of 31 provinces (municipalities, autonomous regions) in China from 2006 to 2017, and uses a fixed-effect panel model to analyze the relationship between the capital structure and regional development differences. According to the results of empirical research, there is indeed a relationship between the capital structure and the formation of regional differences, that is, capital efficiency of different subjects varies in promoting economic growth in the eastern, central and western regions, while the economic growth of different regions has different attractiveness to different capital subjects, this kind of influence will last for one period after another. It is this kind of cyclic interaction that forms the "Matthew effect" of "the strong get stronger and the weak get weaker" in regional development. Therefore, based on the problems mentioned in this article, regions should implement policies to attract the combined flow of various types of capital in a targeted manner, narrow the gap in China's eastern, central and western regions development as much as possible, thereby optimizing the regional capital structure and better promoting the coordinated development of China's regional economy.
VL  - 10
IS  - 4
ER  -

Copy | Download