A Comparative Study On The Environment Of Private Economy Between Zhejiang And Anhui

Since reformation and opening in 1980s, the private economy has developed greatly in Anhui. But, Anhui's private economy is falling behind the developed provinces as Guangdong, Jiangsu, Zhejiang and so on, especially, in the scale and the quantity. On the purpose of providing some theory instructions for the development of private economy to Anhui, this paper try to find the true reason of this disparity through the comparison of Zhejiang and Anhui.Through comparing the private economy between Anhui and Zhejiang provinces, we find that there is a big disparity in external environment of private economy. Firstly, in the environment of location, Zhejiang has the unique geographical superiority. On the one hand, Anhui locates on the mid-west interior areas, which near to the coastal developed areas and close to the Yangtze River delta region. Be attracted by the peripheral key cities, those economy factors flowing from Southern and Northern areas to Anhui, are unable to be aggregated by Anhui. Above all, many elements of production, such as capital, project, talented person and resources, has massively flowed to the coastal developed area with the aid of the transportation, which extend in all directions. Secondly, in cultural, the people in Zhejiang are more likely know one's own business and they like trade and handicraft. This kind of invisible resources has played a vital role in economic development in Zhejiang. Comparatively, Huizhou's culture on the one hand has given us some historical inspiration that trade is not only profit but also a culture. On the other hand, it actually has hindered the development of private economy. Thirdly, as to management of government, governments of Zhejiang pay great attention to the innovation, they respect the right of starting a business, and they realize the service is very important. While governments of Anhui are absorbed closely in policy of the central government, that they are lack of innovation. Fourthly, financing environment of Anhui is also backward to Zhejiang. Lastly, in the resources of entrepreneur, the quantity of entrepreneurs in Anhui also falls far behind to Zhejiang.After the comparison of the external environment, we try to find the reason of this disparity in a deeper step. Through establishing two models, we find that the disparity between Anhui and Zhejiang may possibly owe to the differences of the endogenous system. In addition, we find that government's favour with state owned economy could be changed by private economy' s own development.Finally, this article gives some comments to the Anhui Province private economy development from the reality. In order to speed up the private economy of Anhui, first, we have to change the function of government; second, we have to establish a non- mainstream finance system to solve the finance problem of private economy. Last, we should act as circumstances permits, and establish more private enterprise cluster.The innovations of this paper are just as the following content: first, the paper compares the overall scales and other factors of private economy situation between Anhui and Zhejiang provinces. It also compared the development of the industrial cluster. Second, the paper tries to find the reason that leading the disparity from comparing the external environment of private economy. Third, we attempted to get the real reasons of this disparity from two models.