The Research On The Development Of Local Government Investment And Financing Platform In The Process Of New Urbanization

Since 2008, Our local government investment and financing platform develops along with the rapid development of urbanization. However, the existing physical problem such as the emergence of debt problems, platform company mismanagement and other problems, has been gradually restricted its development. And the state has promulgated a series of policies in order to address potential debt problem. Deepening economic reform is an inevitable trend of development of their health. Domestic and foreign investment and financing experience shows improvement and relying on bonds, financial or other markets, is an effective way to solve the public goods investment and financing issues.In this paper, the principle of empirical analysis and normative analysis combination are expanded. Firstly, this paper combs the preliminary studies about the local government investment and financing at home and abroad. Secondly, this paper introduces the basic situation of local government investment and financing platform from concept, theoretical foundation, development history and operation mode. Then, the paper summarizes the new dynamic and current problems of the platform in the urbanization development process. Again, to solve these problems, the first step is that this paper constructs the index system and uses MATLAB principal component analysis from the macro level. And the next step is that using entropy coefficient and TOPSIS method evaluates platform companies to find the main reasons lending to the low score. The last step is comprehensive analysis that the local financial, governmental action, financial market environment is the main reason affecting the platform development. Furthermore, the paper summarizes the comparison of typical areas of investment and financing model of the foreign local government, and the experience for our platform. Finally, according to the preliminary results of data analysis and learning from foreign experience, this paper makes suggestions of local government financing platform for future healthy development that we should transform government achievements, deepen financial reform, improve the legal system, strengthen auditing and supervision, establish a risk warning mechanism, build a reasonable platform company management system, and diversify PPP and other investment and financing channels.