Research On The Status And Trend Of Investment In Western China And Its Investment Policy Under The Background Of Globalization

From the point of investment practice, policies and regulations are the most important component of the investment environment. The practice of economic development at home and abroad shows that a country or regional development depends on the policy environment and related factors which formed by policy environment. Investment is one of the engines of economic growth, so the improvement of the investment status of the western region will promote the development of western region economy which is underdeveloped. Starting from the exiting problem in western region investment, this research try to find the policy reason for the present situation of western region investment and give some advices to improve the investment policy.The paper firstly introduces the concepts of study objects. The scope of the western region includes Sichuan, Guizhou, Yunnan, Tibet, Shanxi, Gansu, Qinghai, Ningxia, Xinjiang, Inner Mongolia, Guangxi, according to the "Seventh National Economic and Social Development Five-Year Plan (1986-1990) " adopted by the National Fourth Session of the Sixth National People's Congress. China is divided into three regions, eastern, western, and central. Investment includes investment in physical capital and human capital investment. Due to the limited statistics, we use the permanent asset investment instead of the whole investment. In the analysis of the contribution of investment to economic growth, we only analyze the contribution of fixed asset investment to economic growth.In the process of analysis the present situation of western region investment, we firstly analyze the overall size of investment in the western region and its proportion in the country. The overall size of investment is closely related to the national investment policy. The scale of western region investment is low and there is till a large difference with the eastern region. Through the analysis of the structure of the investment in fixed asset, we find the main source of the investment capital of western region is self-financing. The scale of foreign investment is low and foreign investment play a little role in western region economy. The small scale of self-financing fund indicates that the source of investment funds should be expanded. We also find in western region of China investment have an appropriate industrial structure. At the end of the part, we forecast the trend of investment in western region of China when facing new international situation.The fifth part of the article begins to analyze the investment policy. The policy is divided into two parts, the national level policy and the regional level policy. And the analysis of the regional level policy is more important in this research, especially the policy for private investment and the policy for foreign investment. From this part, we find the preferential policies to attract foreign investment is not the determining factor in attracting foreign investors and improving other areas such as infrastructure, rules, human resources bottlenecks are more important and more conducive to attracting foreign investment. Private economy faces some restrictions, such as market access, financing channels, chaotic management and so on. All of that limit the development of private economy.As to the defect of the western region investment policy, the sixth part researches the reform of investment policy. The future policy bias should consider four aspects. At the end, the paper gives some recommendations to build suitable policy for investment.