| Since the Chinese government policy of west explore was implemented in 1999,one of the key issues facing us has been how to raise substantial funds to stimulate and promote the economic development in that underdeveloped region. Infrastructure construction, industry optimization, SOE reform, resource usage and environment protection there all need great capital input. This thesis analyzes the three sources of capital input: government investment, social investment and foreign direct investment, including the new features that show in each of the three sources and the factors that still affect the external capital's entrance, and offers proper suggestions to the current problems.First, the economic development in west China must have government support. However, the total government input is quite limited since it comes mainly from fiscal and loan. So effective capital input system must be established, adopting the policy of investors diversification, various investing ways and capital marketing. Moreover, government investment cannot follow its former policies such as fiscal loan, transferring, etc. simply under the new economic changes. It must invent practical means and ways of investing according to west China's regional economic features and taking domestic and international economic changes into consideration.The government investment should focus on supporting leading industries. Heavy capital input into these industries and favorite policies on them will guide external funds into them, consequently providing enough capital to these leading industries. The government should offer more support of fiscal policy, taxation, financing, interest rate setting, credit loan to west region. For example, increase fiscal input proportion to west explore, reduce company tax, exempt the resource developing enterprises of resource tax, encourage the companies in infrastructure, environment protection, tourism , hi-tech to go on market, implement different interest rate between east and west, raise west deposit rate, lower loan rate, establish west explore fund. At the same time, some restrictive rules and regulations on social capital and foreign direct investment must be loosen, using taxation and pricing policy to attract external capital, finally setting up a comprehensive financing system and satisfying the need of capital in west explore.Social investment is the power engine for a fast and continuous developing regioneconomy. The biggest difference between west China and east China lies in the lagging behind of social investment and NSOE development. However, a lot of obstacles such as market entrance, property protection, "national treatment", organization and regulation innovation still exist, blocking the way of social capital. Measures must be taken to stimulate social capital's interest to invest in west China. Based on the fact that all capital is profit chasing, the government should further loosen the investing restrictions on NSOE, especially individual economy, lower the entrance threshold, speed up investing system, expand social capital's entrance channel, stronghold fiscal and taxation policy to guide and support social investment, invent multi financial systems suitable for social capital needs, establish investment service system and help social investors improve management and decision, develop NSOE financial agencies, and set up efficient credit guarantee system. As to the industry guidance, the government investment should play the leading role, introducing social capital enter into traditional industry, hi-tech industry and infrastructure, thus promoting optimization of the traditional industry frame in west China.China's fast economic development since reforming and opening-to-the-outside policy was implemented is not separable with trade, foreign direct investment and high domestic saving rate. During the process of west explore, we cannot overlook the importance of this available source. Just similar to social capital, there are many obstacles to block the way of f... |
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