Studies On Private Lending In Erdos

In recent years, the economic development in Erdos is rapid. Since the 10th Five-Year Plan, owing to the Western Development Plan of China, the regional economic development of Erdos City has been booming due to fast development on coal, electricity, textile and chemical industries, through effectively utilizations of abundant natural resources, such as coal, cashmere, natural gas, and trona. The GDP has been raised from 11.7 billion in 2002 to 260 billion in 2010. The per capita income in Erdos is U$15,000, as ranked 1st in Inner Mongolia Autonomous Region, and 39th nationwide. Along with economic development, social development is also fast. With rapid regional economic development, private lending in Erdos has attracted nationwide attention. There is a saying that people in Erdos rather invest money in lending than in stock market.In Erdos, there is a strong relationship between regional economic development and private lending which is very similar to other areas and cities but with unique difference. The purpose of this study is to reveal the reasons for such development and to provide the theoretical bases for better utilization of private capital.