Abstract: The methods in previous literatures were improved based on neoclassical economic theory,and the ratio of the actual total output to the total output under the optimal conditions of capital allocation was used to measure the situation of capital allocation between the industrial sectors of China.Using this method we estimated the capital allocation efficiency in China’s industrial sector.The capital allocation efficiency of China’s manufacturing industry shows a significant volatility,it is closely related to the change of the country’s industrialization process,its value remains at 47.6%~63.8%,and annual average is 55.8%.The current situation of capital allocation is unsatisfactory,and so it needs to be further optimized.

Key words: industrial manufacturing, marginal product of capital, efficiency of capital allocation, estimate