The Cause Of Divergency Of Private Investment Between Eastern And Western Region Of China

Since China's Reform and Opening, the private investment had a rapid growth, not only the scale expand, the investor is polynary. It has became a important power to promote economics development and structural adjustment. But the private investment is unbalanceable in different areas. It is mature in Easten region of China, that has more than half private investment of whole country. In Western regin, the private investment is very weak. This unbalanceable development enlarged the gap between Eastern and Western Region of China and goes against sustainable economic growth. So the research of the differences beween Eastern and Western region of China has great meaning to increase the private investment in West.This article integrated qualitative analysis and quantitative analysis , the static state and dynamic method. At first, this paper discussed the definition of private investment ,the status and function of private investment in the national economy. Next, this article used a lot of data to find the differences between Eastern an Western region of China from aspects of private investment total quantity and the scale, the rate of increment, the subject of investment structure, the industrial structure and the profession structure as well as investment efficiency, he result was: although in the recent years ,western area private investment glowed quickly, the structure is majorized ,and it has made the very big contribution to the western area economic development, but private investment is still unbalanceable in the east-west section areas, the eastern area private investment far exceeded the western area in the total quantity and the scale, already replaced state-owned invests into the leading force to promotes three industrial developments. But the state-owned investment in western ' area still held the very great proportion, the private investment development level have big disparity with the eastern area ,and the gap is becoming bigger and bigger. Based on this, this article analyzed the reason why the east-west section private investment difference formed, from the aspects of infrastructure, the financing environment, the policy environment, the investment field and so on and tried to give some policy proposal further to expand private investment of western area, and promote private investment to develop healthily.