Potential Analysis Of Liaoning Province’s Direct Investment To Mongolia

The economic crisis sweeps the globe devastated world economy with losses spreadfrom the virtual economy to the entity economy,triggering economic development ofcountries subject to different levels of impact.In order to revive the economy, somecountries relax restrictions on foreign capital. It brings unexpected opportunities forLiaoning enterprises ‘foreign direct investment,promoting actively the implementation ofthe “Gong Out “strategy,seeking a favorable position in recombination of humanresources、technology、market and so on under the new situation, gonging to a broaderinternational market, cultivating their own multinational enterprises to promote theeconomy in Liaoning province to the next level, and seek a broader space in survival anddevelopment for enterprise in Liaoning.With the economic reform in the1990s, Mongolia’s economic progress started torecover. By rich natural resources and preferential investment conditions,Mongolia obtainsa fast growth in economic development and high degree of marketization with a widerange of foreign capital and advanced technology. Mongolia’s rising speed in economicdevelopment wins the world attention such as Mongolia won17.3%of the growth in2011,ranked second in the world and12.3%of the growth in2012,ranked the third in theworld.Through the analysis and evaluation,it is not hard to find out that Mongolia has abetter investment environment and a great potential in economic development.Liaoning province ‘s direct investment to Mongolia has its inevitability. First of all, theneeds of the development of industrialization and urbanization in Liaoning for resource hasa very big gap and a very high external dependence and Africa’s political turmoil and spacedistance, if Liaoning invests Mongolia,we can get complementary in resources, which isthe only choice for Liaoning enterprise in the face of the shortage of resources, rising costs,trade friction cases. Secondly, it is an important part of national strategic deployment withMongolia remaining stable, good relations of cooperation from the aspects of geography,politics, economy, culture. Third, in the aspect of policy, there are "the revitalization of thenortheast" twelfth five-year "plan and the United Nations development program called bigTumen river cooperation zone development planning. All this comes to a conclusion thatLiaoning and Mongolia are supplement each other、inseparable, and have a developmentprospect in the future. This article mainly uses the method of literature data analysis, SWOT analysis,historical analysis and quantitative analysis. First of all, the paper puts forward thebackground, purpose, significance, research methods, research status at home and abroad,the innovation points and difficulties, and theoretical basis. And then it analyses deeply thecharacteristics of two markets and resources with Liaoning as a starting point andMongolian as the target. Third, It debates about focusing on Liaoning’s direct investmentto Mongolian for the empirical analysis mainly from four aspects. It uses times seriesmodels to predict that the investment will exceed10millio dollars in2016from thepotential of the scale; From the potential of the investment industry, it has large market inmineral resources, real estate industry and other six industrial industries;Speaking interms of potential investors, it should improve small and medium-sized enterprise level,strengthen state-owned enterprise’s quality; It expounds from seeking resources andmarket and strengthening the strategic alliance from the potential of type of the investment.As the key in the end, from two angles of the government and enterprise, the paper try togive advices on how to make Liaoning’s direct invest to Mongolia better.