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| THE INVESTMENT AND MERGER OF THE EASTERN ENTERPRISES AND COORDINATED DEVELOPMENT OF THE WESTERN AND THE EASTERN REGION |
| CHEN Ji-wang |
| College of Economy and Management, Shanxi Normal University, Linfen 041004, China |
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Abstract Started from the eastern enterprises entering into the western region to invest and merge, the article detailed the positive influence on the economic development of the western and eastern region that are caused by this trans-regional investing and merging. Among these, the positive effects on the eastern region lie in:(1) It helps to speed up the withdrawal of the industries that have lost superiority. It contributes to going up of the industrial structure in the eastern region.(2) Due to the superiority of natural resources, labor price and the favorable policy that the government has offered, the enterprises that invest and merge in the west could enlarge their market with low cost and strength the competitive ability. The positive effects on the western region are mainly in:(1) It can turn the potential advantage of energy and mineral resources、agricultural and labor into economic advantage through complementing between the western region and eastern region.(2) The merging with the eastern enterprises can improve the competitive ability and the utilized efficiency of the fund of the western enterprises by recomposing capital、importing advanced technology、manage experience and product brand.(3) Investment of the eastern enterprises helps to stimulate the local government to change the function, improve the manage level and competitive consciousness of the local enterprises, alter the life style and traditional idea of the local people.(4) Eastern enterprises are superior to foreign enterprises in obtaining information, so the investment and merger with the eastern enterprises can play an exemplary role to the foreign enterprises that will invest in the west. The investment environment of the west is fairly poor, so the central government, besides providing fund support for the infrastructure construction of the west, should grant favorable policies to the west to cut down the risk of investment and to raise the ability of return on investment. In addition, the local government of the western region should build good environment for the investment and merger with the eastern enterprises. Meanwhile, the government of the eastern region should encouraged local enterprises which have actual strength to invest in the west.
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Received: 27 May 2002
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2002, Vol. 17 
