A research on the spatial disparity of China's private economic capital : Based on an Institutional non-equilibrium approach

In this paper we investigate China’s private economic capital and its spatial disparity from the perspective of institutional non-equilibrium, and then we test the efficiency coefficient of the institutional change of a region and inter-regions,which is analyzed on a special cost-benefit model.The empirical results indicate that, China’s private economic capital and its spatial disparity are strongly related to the following institutional factors: property change, government’s interference on economy, interior labor market’s institution and marketization of credit capital’s distribution, among which property change plays the largest marginal effect.The efficiency of property institutional change on private economy development is much larger in middle area than in western area, while other variables display opposite results, although the efficiency values of the same variable in both areas are very close.In each area, various institutional variables have different efficiency value, and property change enjoys the largest one.Our conclusions highlight the important role of institutional change in the economic development in our country, and provide great significance to our private economy development