Research On The Value Creation Ability Of China’s Local Government Investment And Financing Platform

Since2008, China has implemented a moderately loose monetary policy and a positive fiscal policy in response to the international financial crisis, so credit availability has grown rapidly, and the credit exceeded nearly30thousand billion Yuan from2008to2011. The local government investment and financing platform is one of the most attractive, the most active, and the most noteworthy financing entities.The development of China’s local government investment and financing platform is a product of economic transition. As an important investment and financing mode, the local government investment and financing platform plays a positive role on raising funds to promote the infrastructure and public utilities. The domestic and foreign scholars have discussed on management structure, management system, investment and financing mechanism of value creation and performance of the local investment and financing platform, but there is still a lack of theoretical system on value creation of investment and financing platform. Research on the role of platform management and the platform in the local government, especially for the platform value creation management, which is more fragmented, has not yet been excavated and summarized for the mature theory system. There is less research for the local government investment and financing platform on what kind of operating mode, how to create value, and how to improve the financing efficiency. Based on the reference and comprehension of domestic and foreign relevant research results, fully using platform theory, enterprise management, technology economics, institutional economics and other international and domestic research achievements, and applying knowledge management, organization theory, system theory, technical economics, innovation economics, and organizational learning, the paper does a comprehensive and systematic study on value creation ability and performance. On the basis of the research on the concept, classification and its governance structure of the local government investment and financing platform, the paper does the systematic analysis on value creation mechanism of the local government investment and financing platform, puts forward value creation ability, operation management and performance management model of local government investment and financing platform, and demonstrates the value creation growth of local government investment and financing platform through two kinds of factors interaction between the platform organization innovation (activate stock) and public architecture design (incremental spread), analyzes the existing main problems of local government investment and financing system. The paper puts forward it should straighten out the relationship of local government investment and financing platform construction, and puts forward suggestions on how to accelerate the establishment of the local government investment and financing system.At the same time, this paper also analyses the interaction mechanism of platform operating mechanism, platform value creation mechanism, and platform creating performance, and adopts structural equation to carry out the empirical research. After determining the new pattern and way of platform operation, the paper designs performance evaluation system, such as the platform organization innovation and value creation mechanism on the basis of system analysis on value creation model and mechanism of local government investment and financing platform, and does the empirical research using fuzzy comprehensive evaluation method. Taking local government investment and financing platform model and theoretical research as the foundation, the paper concludes that value creation theory of platform investment mechanism through the platform mode operating mechanism analysis, and does the empirical research on performance evaluation of platform value creation through the platform value creation potential management and value extraction ability management, and puts forward the corresponding management methods.