Abstract: Material capital plays an irreplaceable role in economic development. Since the reform and opening up, its formation efficiency in China has greatly improved. There, however, lie great differences in different regions and industries. This paper, based on the data of statistical yearbook, tells that efficiency in developed areas is relatively high, that in western the worst, that in northeast significantly reduced. In terms of industry distribution, the efficiency of industry is not high, while that of traditional manufacturing industry is higher, higher than that of high-tech manufacturing industry. On the contrary, the efficiency of traditional industries like service (accommodation, catering, wholesale and retail) and construction is high. It should be said that the current tax sharing system, local performance evaluation standards and financial repression have increased the mismatch of resources to a certain extent. Therefore, to improve the efficiency of resource allocation we should build a standardized system of central and local authority, of expenditure responsibility and financial resources, further improve the assessment mechanism of government officials, and optimize the financial environment.

Key words: capital formation, material capital, allocation efficiency