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The Building of Government’s Financing Platform during the Industry Accepting

Author: WangMin
Tutor: ZhangZhiDong
School: Anhui University
Course: Industrial Economics
Keywords: industry accepts financing gap government financing platform
CLC: F283
Type: Master's thesis
Year: 2010
Downloads: 612
Quote: 6
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Abstract


The industry shifts and accepts is becomeing more important for economic cooperation between different countries or between different areas, through the industry accepts, the low developed area can fully utilize one’s own key element advantage, drive regional economic development, and promote the regional economic equilibrium. However, in the course of industry shifts and accepts, how to attract the most favorable enterprise to this regional economy, and how to guarantee long-term development of enterprises is a question. This needs a good management environment, the management environment said here has already included infrastructure construction, such as traffic, transportation, etc., and also includes construction of facilities in the development zone, industrial park, demonstration area related, where one stays too, whole construction of the garden environment that the transportation of for instance related storage, communication, medical treatment of garden, garden do shopping, etc., still include the administrative system of enterprises.And these, most of all are public products or accurate public products, the private capital is generally unwilling or have no ability to bear, and government’s financing is more important.After the reform of the national system of tax allocation, government’s financing platform is build in a lot of places to provide public products such as the public utility construction, etc. and it evolve with a lot of modes too. The platform of financing plays a certain role in promoting economic construction. However, at the present stage, drawback and risk of the financing platform of the government are coming out prominently, the numerous meetings of the State Council has proposed standardizing the financing platform of the local government. Then, how to form financing platforms of a government and how to improve government financing platform efficiency, and to reduce the economic negative effect, reduce risk hidden danger at the same time and how widen government financing mode, is the question to be investegated in this text.First of all, this article has studied the domestic and international literature about industry’s shifting and government’s financing other and relating subjeets. There is fewer literature about the combination of the two.Secondly, the article has studied government’s financing mode, and questions such as the production background, developing stage, the current situation of the development, main function of government financing platform, etc.. This part have carried on the theory summary to the financing platform of the government.Moreover, the article needs the rigid and soft facilities of energetical construction to carry on research to the industry carrying on, difficulty of probing into and is short of fund the industry caused while accepting. On one hand, the environmental construction that the industry shifts and attracts the industry and shifts carrying on to need, need the financing platform of the government to provide with funds. Such as carrying on infrastructure construction of the ground, related construction of facilities of the development zone,etc., belong to the part of the public products. And usually these are born privately and unably unwilling to bear, government’s financial allocations are limited, cause the industry to accept foundation plinth facilities and lag behind, it is difficult to attract enterprises to enter. The industry accepts ground auxiliary facility and administrative system of places such as a large number of development zones, industrial park,etc. lag behind, it is difficult to enter enterprise’s sustainable development of the garden. On the other hand, the industry shifts and accepts the development of small and medium-sized enterprises needs the finaccing platform of the government to provide with funds to break through the bottleneck of the fund. Develop the industry, numerous small and medium-sized enterprises join the development team, need fund, it is difficult to face the loan, financing is difficult. Then, putting up the financing platform of the government can solve two problems, first, solve the financial institution and social idle money and leave the problem unused, second, finance for project and enterprise of fund.The fourth part of the article, it analyzes the subject problem faced in financing platform of the government under the new situation. A large number of potential refund risks of government financing platform, is more noticeable problem of the present stage, this text attempts to carry on the discussion to the reason causing this kind of question. The reason lies in two points, one is macroscopical factors such as the tax system of the state finance, economic situation,etc.. On the other hand, it is the factor of micro factors of the financing platform, for example, factors such as the management system of the platform, operation mode, etc..The fifth part of the article, is the suggestion of standardizing operation as to the existing government financing platform and tried to find wide channel of government financing mode, which provide with funds for industry public construction. The end of this article is a conclusion, which summarizes the article and looks into the distance.

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