Study Of Location Choice And Industrial Shift Effect Of Private Investment In China

After 1990, especially the time when "the West Development Strategies" were implemented, capital elements, privately operated capital in particular, began to float to the Midwest, but there are relatively fewer domestic researches on civilian capital investment. This paper analyzes the factors which affect privately operated capital investors' choices of the eastern part, middle part or the western part of China with demonstration of typical cases—two aspects are included: regional flows of Zhejiang-based privately operated capital and its industrial shift effect, enriching privately operated investment theory and real diagnosis research.The first section introduces the research background, research objective, significance, and describes the content of the paper in general. The second section reviews the literature of the typical direct international investment location choice theory and industry transfer theory. The third section, the keystone of the paper, which focuses on privately operated capital location choice theory and its real diagnosis analysis, embodies the innovation of the paper. The paper explores the main factors which dominate the inter-regional shift of privately operated capital. The paper starts from the description of the current situation of privately operated capital investment, makes quantitative analysis of the impact of factors on privately operated capital investment by establishing regional adjustable model, such as CI(-1), GDP, GOV, INFRA and etc., and proposes some policies with the purpose of attracting privately operated capital. The forth section is case study of regional transfer of Zhejiang-based privately operated capital. Some typical provinces are selected from the eastern, middle and western parts of China to demonstrate three models of regional industrial shift and the corresponding industrial shift effect, and policies which are subject to the local development are proposed from the angle of capital import area and capital export area. The fifth part indicates the future trend of research and improvement, which is from the angle of policy.