Study On The Development Of Privately-run Economy In Hei Long Jiang Province

The Central Party Committee ("CPC") has proposed to allow the public sector to play a dominant role and to allow a diverse form of ownership to develop side by side in the economy. It has also proposed to adopt flexible and strategic measures to run the public sector. All these have provided the private economy with tremendous room for rapid expansion and have provided the country with strong momentum for sustainable and steady growth in the future. Heilongjiang province is one of the key old industrial bases of the country. Since the start of "first-five" plan, the country has placed great importance to the investment and building of state-owned enterprises in the province, making state-owned enterprises accounting for a comparatively large proportion across all economic sectors in the province. From 1997, the fact that a large number of state-owned enterprises have been engaged in capital reconstruction, staff distribution and products' structural adjustments, the role played by the public sector in contributing to economic growth has weakened. In order to push for Heilongjiang's economy to develop rapidly and healthily, the Heilongjiang provincial party committee has proposed the strategic goal of "striving for rapid development and building an all-rounded well-being society". It has also proposed to adopt diverse methods to speed up the growth of the private economy and to raise the proportion of Gross Domestic Products (GDP) contributed by the private sector from the present 40% to about 60% in the future. The Heilongjiang province's "eleventh five" plan for the national economy and the social development has pointed out specifically to continue creating rooms for expansion for the non-public owned economy, to direct non-public owned enterprises to strengthen their ability for self-innovation, and to strengthen the support for developing non-public owned economy. All these have created a healthy environment for our research. This research paper contains both theoretical value and practical significance in improving reforms of Heilongjiang province's system, in changing the status quo of the private sector in the province, in improving the economic contributions by the private sector of the province, and in promoting the overall economy.This article first defines the connotation of "non-public ownership" and "private-run" "non-public ownership economy" as an ownership form contrasted with the traditional public ownership economy. And the term "private-run" is not only defined based on ownership but also on its management manner. Also, the concept of private-run economy and private-run enterprise are more than the concept of non-public ownership. This article mainly covers new-system economics theory and comparative advantage theory. Heilongjiang province was greatly influenced by the planned economic system, with the government playing an essential role in economic development. Therefore, it is important to emphasize on the formal system...