Gray System In Shandong Province, Applied Research, Use Of Foreign Regional Economy

Today, with the development of global economic integration, China'shuge potential market demand has been attracting a large amount offoreign investment that has obtained great achievements. It has made thepositive influence to China's development, but it also has brought certainnegative effect. After entering into the WTO, the customs duty has beendropping greatly. With the opening of the tertiary industry, particularly theservice industry, and the foreign investment corporations and domesticcorporations enjoying same rights, our country is facing the crucial time ofreforming strategic of FIU. In order to adapt to the new situation ofdeveloping our country's socialist market economy and the WTO, it isneeded to study deeply and adjust our country's strategy of FIU, so we canuse the FI more positively, reasonable and effectively.Shandong Province is one of coastal provinces that firstly opened tothe world. The Party Committee and the People's Government ofShandong Province have been giving much attention to the foreigneconomy and trade. They have been improving the investmentenvironment diligently, attracted the FI to develop economy positively, andtaken developing foreign economy and trade as the first shining spot ofThree Big Shining Spots in developing the Shandong Province's economy.In order to take up the shift of the international manufacturing industry,they have put forward the development idea to speed up the developmentof the Jiaodong Peninsula Manufacturing Industry Base and the PeninsulaUrban Cluster. Until 2004, Shandong's gross foreign investment totaled55.49 billion US dollars;the average FI scale was 3.44 million US dollars;262 corporations in Shandong province founded by 113 multi-nationalcorporations among the Top 500. Although developing speed of Shandongis quick in FIU, compared to strong economical provinces, such asGuangdong and Jiangsu, Shandong Province still have gaps in both qualityand quantity, especially the industrial structure and the industrial chain andthe matching ability of Shandong Province are weak which restrictShandong's further enhancement. Therefore, it is significant to researchFIU of Shandong Province deeply and thoroughly.From four aspects, this article studies the FIU in Shandong and theapplication of Grey System Theory in regional economy, utilizing therelated mathematics diagram and model. It draws the quantitative andqualitative results, and profound some rationalizing suggestions.1. From three ways of project structure, regional structure andeconomic structure, it analyzes FIU status in Shandong, ways of FIU andchanging process in scale.2. The article initially introduces the Grey System Theory of ProfessorDeng Julong into studying the FIU in Shandong regional economy. Itcalculates the Related Degree between the actual FIU in Peninsula UrbanCluster and macroeconomics indexes in two instances. Throughcontrastively analyzing the Related Degree, it gets the outcome that FIU inthe regional economy of wholly developing the Peninsula Urban Clustercan make great contribution to the development of macro economy in thewhole province.3. The article improves on the application of gray modeling, planningand forecasting, and optimizing in FIU. In two circumstances, during theprocess of planning and optimizing of FIU in the Peninsula Urban Clusterof Shandong it directly compares the data of FIU in 2005 and 2006, whichare from the forecast and draws a conclusion;namely, when the PeninsulaUrban Cluster develops as a unity, its FIU can remain a higher increasetrend.4. The article introduces the Grey System Peninsula Urban ClusterTheory into determining the scale of Peninsula Urban Cluster for the firsttime, too. It respectively forecast the total FIU amount of 8 cities in 7circumstances. From the forecasting data of 2005-2008, it generalizes theFIU increase rules for each city. Analyzing from diagrams, it finds out theoptimum and second-best scales, and puts forward better suggestions of thescale of Shandong Peninsula Urban Cluster. At last, it brings forward othersuggestions and ideas in FIU.