Empirical Analysis of China's Capital Supply and Demand

Author: Xu Jiangping
Publisher:
Publish Date: 2003-08-01
Features: Investment plays such a crucial role in economic growth, making it highly significant to conduct in-depth research on the current status and future potential of its sources (or supply), the current status and future capacity to meet the demand for funds required for a given level of economic growth, and the current status and future trends of the balance between funds supply and demand. Different conditions of funds supply and demand balance will lead to different funding policies. When domestic funds supply exceeds demand, the focus of funding policies should be on stimulating funds demand, while there should be no excessive preferential policies for utilizing foreign capital. When funds demand exceeds supply, improving the efficiency of domestic funds use and attracting more foreign capital should become the focus of funding policies. Are the above basic strategies reasonable? And when funds supply and demand are generally balanced, what kind of funding policies should we adopt? Such questions are also key areas to explore in the research on funds supply and demand.