Capital Flow,Capital Supply and the Unbalanced Regional Economic Development

In the 1990s,the degree of regions' economic development imbalance had deepened,and the direction of capital flow was reverse.Accord to this fact,this article caculates and analyzes the relative capital supply among every provinces.The conclusions are:the regions' economic development imbalance results in the deepening of regions' cap- ital productivity gap,so the capital need in developed region is high than developing region.In the time of capital spar- sity of whole economy,the capital supply and economy develop level has negative relation.It means that the level of capital supply in developed region is high than developing region.For this reason,it will more effective to reduce the gap of region economic development by improving the market condition in developing region than by increasing the cap- ital supply to developing region.