Comparative Advantage And Impact Factor Analysis Of Private Economy Business Climate In Heilongjiang Province

Private economy is people's livelihood economy and prosperous economy as well.It has contributed to solving the employment problem and enriching the people to a certain extent.With its increasing contribution to whole economy,private economy becomes an important impetus to realize a well-off society in China.However,the external development environment of the private business in China is not optimistic.In Heilongjiang province,one the old northeast industrial bases,this situation is especially apparent.Inadequate protection of property rights,slow changes of government functions,heavy taxes and fees,lack of intermediary organizations and financing difficulties have increased the transaction costs of the private economy and severely restricted its development.For the private economy in Heilongjiang province,understanding the characteristics and impact factors of its business climate,judging the gap correctly between the business climate in Heilongjiang and those in Jilin and Liaoning,become urgent puzzles for local government to promote economy reform and development.This paper analyzes the current situation of the business climate for private economy in Heilongjiang and the factors hindering its development quantitatively and qualitatively.Firstly,the environmental constrains are analyzed based on comparative theory,which reveals that the private business is facing some difficulties in environmental aspects.Secondly,after analyzing the situation of private economy in Heilongjiang,this study compares its private economy with the neighboring developed provinces and cities to find out the gap and development potential.Thirdly,the regression analysis of relevant data is made,which reveals the constraint factors and influence affecting the private business in Heilongjiang.Finally,this study predicts the trend of private economy in Heilongjiang in the next three years,and some corresponding policy recommendations are presented based on the above-mentioned horizontal and vertical data analysis results.This study draws some conclusions.From a horizontal comparison among the three northeastern provinces,the increased value of private economy in Heilongjiang stays in the middle position but only about half of the value in Liaoning.The increased value of private economy in Heilongjiang is much lowerthan those in the eastern coastal developed provinces and cities.From the analysis of influencing factors,we find that government environment,market factor environment,innovation and entrepreneurship environment,and social environment are the major factors influencing the operation of private economy in Heilongjiang.Furthermore,some policy suggestions are made for the local government to improve the business climate of private economy in Heilongjiang province.