Key Cities Of Jiangsu, Zhejiang Cost Of Doing Business Is A Comparative Study

As an important component of city competitive power, business cost can affectinvestors' location investment decision to a certain extent, and consequently influencethe economic development in a city. In recent years, it appeared that a great number ofenterprises moving out from Zhejiang province, and compared to neighbor Shanghai,Jiangsu province, Zhejiang also has a biggish gap in fetching in foreign capital. Suchphenomenon is concerned to the rapid rise of business cost in Zhejiang to-a certainextent. Therefore, it is significative to compare the differences between business costconditions-in Shanghai and other major cities in Zhejiang and Jiangsu province, andthrough which we can discover the superiority and insufficiency of Zhejiang'sbusiness cost condition.In this paper, after summarizing the influential factors of location investmentdecision involved in the Economics of Location and massive domestic and foreigncorrelative research on business cost, we define the connotation of business cost anddivide it into two parts including factor cost and transaction cost. Then based on theanatomy of components of business cost, we establish a mulriple evaluation systemincluding three classes of variables. After that, we choose seven major cities includingShanghai, Hangzhou, Ningbo, Wenzhou, Suzhou, Nanjing and Wuxi as researchtargets, and take the massive objective statistical data and the subjective data whichrooting in questionnaire investigation as the basis, compare the business costconditions and analyze the superiorities and insufficiencies of business cost in variouscities, and reached reached every city business affairs cost row condition, have beenWuxi, Ningbo, Shanghai, Suzhou, Nanjing, Hangzhou, Wen Zhou City in properorder from low to high. In the process of research, we also find that in the influencemechanism which business cost affects economic development, the rate of return oninvestment operates important effect. Therefore, in order to realize business cost fromanother dialectic angle, we also compare the business cost of every city combinedwith the cost -benefit analysis, and discovered every city business affairs cost currentsituation have not given city economic growth to bring about the obvious blockage together. At the last part of this paper, we table some, proposals aiming for improvingthe business cost condition in Zhejiang cities.