Optimization Of External Investments For Local Governments

The external investment introduction is an important approach to promote thecapital flows, the efficiency utilization of capital, and the balanced development of localeconomy. Since the implementation of the reform and opening up policy, in order tospeed up the economic development of the area, local governments have set upeconomic development and industrial zones, as the window of the local economy toattract external investment. These approaches have played a great positive role to makeup for the lack of enterprise funding sources, to promote economic growth and balanceddevelopment, and to broad employment channels. The introductions of many of theseprojects, however, have the lack of long-term planning and scientific basis. The singlepursuit of the GDP growth leads to the damage of the surrounding environment.In this dissertation, we focus on the enterprise selection and location, two of themost critical aspects of the local government to attract external investment, to study theoptimization problem. The main results are the enterprise comprehensive evaluationcriterion system based on the combination of reality and existing research, and thegeneral conclusions of the introduction of enterprise by using the Analytic HierarchyProcess; the concept of facility nasty index and its reasonable quantification, and theclassification of facilities (enterprise); the location model constructed in such a way:select the environmental pollution of surrounding areas as the objective function, theenergy consumption per unit time, land size of the facility and the distance betweenfacilities and cities as constraints.We use the projects introduced in recent years to Qindu area as an instance to solvethe two types of models. The results show that the actual situations of these enterprises are roughly identical to the final sequence. The optimal solution of the location model,however, greatly reduces the extent of environmental pollution compared with thelocation distribution of the existing introduced enterprises.Although the evaluation criterion selection and parameter estimation are notprecise enough, the research methods used in this paper and the models have a certaintheoretical and practical significance to the local government investment introductionoptimization. This paper also presents a new and useful concept and optimizationmodeling ideas for subsequent related problems.