Research On Evaluating The Regional Investment Environment Of Modern Service Industry In China

Regional investment environment for the modern service industry is a dominant factor, which determines the modern service industry-specific FDI amount and structure attracted by a certain areas. From the host country's point of view, this paper starts with analyzing the particular characteristics of modern service industry as well as their specific requirements imposed upon regional investment environment, based on which all the influential factors are examined in the regional investment environment for modern service industry. Then, a certain influential index for modern service industry FDI attracting are carefully chosen within the foregoing framework to build up into a whole set of index system for evaluating the regional investment environment of modern service industry, aiming to assessing the modern service industry investment environment of twelve provinces and cities within such four economic regions as Pearl River Delta Economic Zone, Yangtze Delta Economic Zone, Economic Zone encircling the Bohai Sea and the old Northeast Industrial Base in China, and bringing forward some pertinent policy suggestions on improving the modern service industry investment environment for the local governments.The research on evaluating regional investment environment for modern service industry is carried out in a six-stage process described as follows:At first, to clearly define some crucial concepts related to the evaluation process and put forward the theoretical and practical basis for the whole research. Secondly, to analyze the particular characteristics of modern service industry and their specific requirement imposed upon the regional investment environment, based on which the regional investment environment for modern service industry is divided into the regional environment factor subsystem and the industry-specific factor subsystem with several factors respectively for each. Thirdly, to carefully choose some appropriate index to build up into a set of system within forgoing framework;Fourthly, to compare, choose a suitable evaluation method and give the description of evaluation process;Fifthly, to evaluate the regional investment environment for modern service industry with twelve provinces and cities as the object within Pearl River Delta Economic Zone, Yangtze Delta Economic Zone, Economic Zone encircling the Bohai Sea and the old Northeast Industrial Base in China. Finally, to come to a conclusion.Quantitative and qualitative analysis is carried out together to evaluate the investment environment. The evaluation idea goes like this: to evaluate the various factors in the regional environment factor subsystem and the industry-specific factor subsystem on basis of factor analysis firstly, and then to evaluate the regional investment environment for modern service industry in a general way with the extracted components in the regional environment factor subsystem and the seven industry-specific factors as the general evaluation index.The research results are presented as follows: (1) The regional investment environment for modern service industry is defined as "a complex system composed of various regional and industrial factors influencing and determining the size, structure and effects of FDI attracted by modern service industry within a certain regions during a certain period of time." (2) The regional investment environment for modern service industry is divided into regional environment factor subsystem and industry-specific factor subsystem with the former as the basis and the latter as the key and determinant for the whole investment environment for modern service industry. (3) The evaluation results show a great imbalance among 12 provinces and cities within four economic regions, with Beijing, Shanghai, Guangdong, Zhejiang and Jiangsu ranked as the top five, Hebei, Heilongjiang and Jilin ranked as the bottom three, and the four regions ranked as Yangtze Delta Economic Zone, Economic Zone encircling the Bohai Sea, Pearl River Delta Economic Zone, the old Northeast Industrial Base. This result basically conforms to the fact and is of a certain instructive significance.