The Studies On The Economy Of "Wenzhou Model" From The Viewpoint Of Investment

This article is a research about the development of "Wenzhou Model"economy from the angle of the influence of investment change upon economy.It analysis the cause,the development process and the current problem of"Wenzhou Model" from the clue of investment.Since the adoption of the reforming-and-opening policy, the overalleconomic situation of the whole country is good. And the economic growthrate of Zhejiang sees yearly elevation;however "Wenzhou Model" economystumps into an inharmonic this keynote after 1997. "Wenzhou Model", whichwas admired, gradually yields into a state of chaos. Since 1997, the economicgrowth rate of Wenzhou suffers a monotonous drop, with large amount ofcapital drained;and local people's complaints are also carried on all sorts ofmedia. Regarding the causes of this phenomenon, all circles of society,ranging from particularly Wenzhou itself to the whole country, give manyremarks.So far, scholars analyses of the difficult encountered by "Wenzhou Model"fall into the following three aspects: 1. the culture of Wenzhou is bound toresult in such a situation;2.prive enterprises is bound to go through such aphase as a rule of their development;3.the deterioration of investmentenvironment because of government leads to large numbers of enterprisesmovement and capital drainage. Heated debates are made in all circles, whichsometimes cause furious controversy. In view that research from other aspectare highly likely to draw no definite conclusion, the author have to carry out aquantitative analysis from the angle of investment change, objectivity arguinghow much the influence of investment growth on economic growth since 1997,that is, laterally demonstrating the amount of influence capital drainagearising on grounds of government-caused deterioration of economicenvironment upon economic growth, concluding with some advice ofameliorating investment environment.The author first provide the definitions of "Wenzhou Model", investmentand economic growth etc. then makes a brief review of the researches inregard to "Wenzhou Model" economy, clarifying the viewpoint and realisticsignificance of this research and comparing "Wenzhou Model" economy andother economies.This research adopts a theory-demonstration method, changing the old wayin which Cangnan economy is merely qualitatively studied, sufficientlyapplying statistical data to the construction of a model for a regression. Thetheory part refers to literature;and the demonstration part adoptsinvestigation and statistical regression. The weight of value in this articlerests upon the fact that not only it embraces theoretical discussion but also itprovides a reference for the governments in regard to their decision-making.The argument and conclusion, without saying, are characteristic of a criticismof the current condition, which deserves a height estimate.