An Overview of Financial Resources Allocation in China

In order to observe financial resources allocation in China, we design an indicator (equilibrium coefficient) to measure the equilibrium level of the regional financial resources from 1978 to 2008. On the national level, the equilibrium level of financial resources allocation in China generally experiences three phases, and severe imbalanced allocation situation of financial resources appears between 1990 and 2000. Meanwhile, for the three regions of China, we find that most of financial resources have flowed into the east area these years. In contrast, the middle and west are outflow areas. The outflow phenomenon is the worst in the middle area, and most of its outflow capital is actually injected into the east area.