Application Development Zones And Industrial Investment And Financing Plan

Economic Development Zone occupies a special and important role in the economic development. It’s the engine of promoting socio-economic development, the nurturing cradle of key and emerging industries, as well as the important source of employment and business opportunities. Therefore, it is commonly used by Governments, and thus bringing indisputable demonstration effects and radiation influence to the economy. After the reform and opening-up, China’s development zones have made remarkable achievements in the economy upgrade, industrial development and regional progress. But with the changes in the international situation and China’s economic situation, on the one hand, the development zone becomes the hinterland converged with thousands of opportunities, on the other hand, it is facing many problems in the construction and coordinated development. The existing maladies include the blindness in the construction process, the irrationality of the capital chain control and the structural imbalances in industrial development.The original construction of the development confined in planning and building without enough consideration in the intermediate part-coordination of funds; in the subsequent stage of industrial development of development zones, investment and financing programs are mainly by means of macro estimation and expert assessment, lack of overall planning guidance to investment and financing system. The construction of development zones is an open, complex engineering system, the process of building and decision-making of funds in the development stage largely determine whether the whole system is smooth and efficient. Appropriate and targeted investment and financing planning not only provide solid funds’security for the construction and development of the development Zone, also optimize the allocation of resources and enhance the financing efficiency.On the basis of analyzing the investment and financing planning theory, this study takes the development zone funds as the starting point to build a set of investment and financing planning system covering infrastructure stage and industry-development stage from the government’s perspective. In view of the differences of the construction content and the government’s functions in the two-stage, this study selects different models for the planning design. In the light of complex cash flow in the infrastructure part, this study builds a linear programming model through funds’ balance analysis and financing optimization analysis of decision-making to solve the problem of pooling infrastructure. For the industrial development part, according to the development zone’s characteristics analysis of the structure of its industry investment and financing, and on the basis of empirical data and statistics, this study quantitatively researches the proportion of the industry financing structure by constructing parameter estimation model and provides macro guidance for the government’s industrial investment and financing planning.After a theoretical analysis and model building as well as the use of actual cases, this study gets the following conclusions:1. There are some defects in the traditional construction mode of China’s economic development zone, especially reflected in the lack of financial co-ordination, misallocation of resources and incomplete overall planning, but investment and financing plan, which links the planning and construction of development zone, can effectively make up for the deficiencies.2. The core of the investment and financing plan is the co-ordination of funds, based on the government’s perspective, this study takes the development zone funds as a starting point to design a set of development zone investment and financing planning system which covers the infrastructure stage and the industrial development stage.3. Development Zone’s infrastructure construction provides the material basis for the industrial development, so its investment and financing plan is the core focus of government investment and financing. Based on the cash flow characteristics of this phase, the research takes the financing costs minimization as the objective function, takes the infrastructure loans, land reserve loans and BT projects of the planning period as control variables, and according to the investment demand and financing base, we build a linear programming model to systematically solve the problem of infrastructure funding sources and financing timing to balance funds and optimize financing.4. Development zone’s industrial development undertakes infrastructure, it is the fundamental way to complete development zone’s wealth creation, so its investment and financing plan becomes the ultimate goal of government investment and financing. According to the development zone’s characteristics analysis of the structure of its industry investment and financing, and on the basis of empirical data and statistics, this study quantitatively researches the proportion of the industry financing structure by constructing parameter estimation model and provides macro economic data reference for the government’s investment and industry development.5. The model has been practically applied in Guiyang high-tech zones to formulate investment and financing planning, based on the case results and the analysis of model factors, this paper evaluates of the model effects and limitation, suggesting that dynamic programming and dynamic evaluation methods should be adopted to build a more comprehensive model of investment and financing planning.Based on the above findings, this study suggests that the government in development zone’s infrastructure and industrial development process should actively carry out the following points:1. Improve the environment of infrastructure to boost park’s industry development;2. Use a variety of financing methods to guide private capital’s participation;3. Draw up the investment and financing plans to optimize the pooling of funds;4. Strengthen the government’s industrial support to promote the development of small and medium-sized enterprises;5. Clear the obstruction of indirect financing and build the financing platform;6. Improve the financing system facilities to encourage direct financing from capital market.