Factors Of The Regional Investment Environment Affecting The Regional Investment In Fixed Assets

Fluctuations in the world economy are normal, it can bring vitality to economic development and opportunities to adjust, but it also increases the difficulty to retain relative stability of economic. In response to economic fluctuations, adjusting the speed of economic growth, governments focus on investment and consumption.Expanding investment is the most direct and effective means to stimulate economic growth. Choosing the proper investment projects is essential to the local government. To measure the effect of government investment, we should see the quantity of investment by the other players in the region. Therefore, the local government should choose investment projects which can improve the level of investment environment in these areas. In practice, regional characteristics should be considered.There are many factors that affect the investment, including regional transport, health, economic structure, population and other aspects, which can be referred to as investment environment. The levels and characteristics of impact on investment of different factors are different. Choosing area of investment carefully is necessary.This paper examines factors impacting fixed asset investment rate, and selects the 31 provinces and cities to analyze. Considering the great differences between some provinces and cities, this paper analyzed factors impacting the rate of investment in fixed assets in two steps, and puts the characteristics of the region into the analysis.First, in order to reflect as fully as possible the relationship between the rate of investment in fixed assets and investment environmental factors, this paper clusters the 31 regions. In accordance with the selected indicators, the regions are divided into three categories. The characteristics of various regions are described. Second, this paper does regression analysis on investment rate and environmental indicators of the three categories respectively, to quantify influence.Based on the analysis of data, this paper gives the conclusions of analysis and policy implications. First, it needs a period of time for the improved investment environment to play a role, particularly in the regions of low investment rate. We should have patience. Second, increase in the proportion of secondary industry can significantly increase the region's investment, so improving the level of the secondary industry should be one of the regional industrial policy objectives. Third, the openness of the region and the level of investment have a positive correlation. Some regions can improve their conditions of economic openness. Fourth, the regional financial environment should be promoted, including direct financing environment and indirect financing environment. Fifth, backward regions should strive to develop the transport level. Sixth, the regions of high population density should solve the overcrowding problem, in order to avoid the negative impact on economic development. Seventh, the proportion of fiscal revenue should be treated differently. Too much intervention in economic development can not achieve the desired effect, and too much laissez-faire is not conducive to the development of long-term economy. All regions should assess the situation and regulate the intensity of intervention in the economy.