Abstract

Based on the literature of capital flow studies, this paper chooses the Feldstein-Horioka model to measure the level of capital flow. The results show that the main factors that positively affect capital flows are savings rate, infrastructure construction, economic structure, government intervention, industry, real estate and transportation facilities construction; the factors that negatively affect capital flows are degree of openness, provincial economic scale and bank capital flows, and finally give policy recommendations to improve the level of capital flows in the Yangtze River Delta.

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