Investment Environment Evaluation Of Petrochemical Industry In Chengdu And Suggestions

Petrochemical industry is one of the most important industries that provide raw materials to the whole economy. It has strong relationship with other industries such as agriculture, electronics, textile and automobile. As China's economy is developing fast and fast, the development of petrochemical industry has become an important direction for industrial upgrading. Lured by the huge benefits of the development of petrochemical industry, many cities in china have established petrochemical industry as its pillar industry and take measures to promote the development of petrochemical industry at present. According to incomplete statistics, more than 30 cities across the country proposed the establishment of petrochemical base. Chengdu also proposed to establish a petrochemical base. So it will be very useful to analyze the investment environment of petrochemical industry in Chengdu.In this paper, the factors that influence the investment environment of petrochemical industry are divided into four categories, which are resources, market condition, infrastructure and the cost of investment. And then we devise an economic model to evaluate the investment environment of the petrochemical industry. In the paper 19 cities are chosen, including Chengdu. We use the newly-devised model to evaluate the investment environment of the petrochemical industry of these 19 cities. Using the results of the evaluation, we compare the Chengdu's investment environment of the petrochemical industry with the other 18cities. By doing so, the advantages and disadvantages of Chengdu to develop petrochemical industry are discovered. At the end of this paper, we provide suggestions to improve the investment environment of the petrochemical industry in Chengdu.The main conclusions of this paper are as follows:(1) The 19 cities can be divided into three groups, which are cities with good investment environment of the petrochemical industry, cities with ordinary investment environment of petrochemical industry and cities with bad investment environment of the petrochemical industry. Chengdu ranks number 11 in this 19cities and the investment environment of the petrochemical industry in Chengdu is ordinary. (2) On one hand, Chengdu has four strengths to develop the petrochemical industry, which are abundant raw materials, enough human resources, huge potential market and low costs of investment. On the other hand, Chengdu has four weaknesses, which are weak R&D ability of the petrochemical enterprises, fragile environment, lack of high-caliber workers and the low level of clustering.In the Suggestions part of this paper, we identify three directions of the development of the petrochemical industry in Chengdu, in order to guarantee the sustainable development of Chengdu's society:Chengdu should stick to develop energy-economic petrochemical industry; Chengdu should develop economy of recycling; Chengdu should R&D-based petrochemical industry. On this basis, this paper has given detailed suggestions to optimize investment environment of petrochemical industry in Chengdu. The key suggestions are:Speed up the construction of the key infrastructure; seize the opportunities to expand investment intensity; Encourage private enterprises to invest in the petrochemical industry in Chengdu; Increase support for independent innovation efforts.