China Financial Daily

Analysis and Discussion: the influence of Shanghai 2010 World Expo on China’ Economy
Shanghai is China’s largest economic center, with the 2010 Shanghai World Expo approaching, Shanghai’s economic development will play a major role. This article is based on the 2010 Shanghai World Expo will make some economic impact analysis study.

First, to promote regional economic development

Yangtze River Delta as the most developed regions of China, 2008 Statistics show that the Yangtze River Delta region accounts for 1% of the land, accounting for 7.0% of the population, creating a 18.28% of GDP, the country’s revenue and 20.04% 37.05% of exports. Shanghai World Expo will be held, must further strengthen the status of Shanghai as a growth pole of the Yangtze River Delta, through agglomeration and spillover effects, and further promote regional economic development. Expo will speed up the Yangtze River Delta personnel, capital, information, technology and other production elements to gather in Shanghai. Concentration in the capital, the Shanghai World Expo is expected to reach 3 billion U.S. dollars direct investment, together with the World Expo supporting municipal infrastructure and transport investment, the required huge amount of money, relying solely on Shanghai’s own capacity is considerably limited funding, will directly affect organizing effect. Other cities in the Yangtze River Delta, the most active in China’s economic development, government funding and private capital the most active areas. The combined effect of the economy in the World Expo, the Yangtze River Delta’s funding will accelerate the collection of Shanghai. In terms of information gathering, organized by the World Expo aims to provide a platform to demonstrate to the world of human social, economic, technological and cultural aspects of good results. By then, all kinds of large amounts of information gathering in Shanghai, Shanghai will become the domestic and international information exchange center.

Second, the adjustment of industrial structure

First, the Shanghai World Expo will be held on capital investment, technology upgrading and policy support and other factors the second industrial structure, accelerate the second upgrade the industrial structure. Shanghai’s per capita GDP in 2008 had reached 75,990 yuan (at household population), converted into U.S. dollars to 9,500 U.S. dollars (in 2008 the average price of RMB against the U.S. dollar 1:8 basis), while GDP per capita, according to statistics from the 5000 U.S. dollars to 10,000 U.S. dollars beyond the traditional industries will face “technical barriers”, the key is to integrate traditional and high-tech industries. Expo 2010 is the first information of the World Expo, Shanghai will certainly promote information technology as a breakthrough in high technology to transform traditional industries, while high-tech Expo economy more conducive to enlarge inflow of foreign capital as the main body so as to further accelerate the process of new industrialization.
Second, the organization of the Shanghai World Expo Shanghai will further strengthen the ability of technological innovation, promote the development of high-tech industries. Expo booth shows the current world’s most innovative products in industrialized countries, they tend to be crystallization of high-tech countries in the top, represents the trend of the times, a fair country proud. Shanghai, as the stage show host, must be two major driving forces: One is content with the advanced technology gap between the products generated by the pressure; second, and advanced technology products from the gap between the obtained enlightenment. In products, competition and exchange Zhanping obtained in the course of this driving force, will certainly Technological Innovation Exhibition City have a profound impact, especially in Shanghai hosts the most. Shanghai is the city’s most innovative thinking and creative city, confined conditions, the majority of scientific and technical personnel can not play overseas study exchange, prevented the expansion of innovative ideas. Today, the world’s top scientific and technological achievements fingertips, this is undoubtedly a great opportunity, it will arouse in the city within the ripple wave of innovation, and promote the development of high-tech industries.

Third, to promote economic center of Shanghai Construction

Investment, consumption, exports are driving the growth of a country’s economy “Troika.” But for a country of a region, the export of this indicator should be changed to “net outflow ‘. Shanghai World Expo will promote the economic growth can start from the investment, consumption, the net outflow of three aspects.

1. Investment
Expo will be the impact of investment mainly in the organization of the process. According to “World Expo 2010 Shanghai China will host the report,” Building for the Expo area will reach 966 million U.S. dollars of investment for the construction of World Expo Village, the investment will reach 94 million, the total investment reached a total of 1060 million, about 88 yuan billion. Compatible with the Expo traffic, shipping and other infrastructure, is also an important aspect of investment. To ensure that the Expo exhibition up to 30 million passengers a day during the foreign tourist accommodation, catering, transport and communications needs, subject to further improve air, rail, highways, telecommunications, electricity and water supply infrastructure and the environment along the river on both sides of the building estimated total investment will reach 20 billion yuan. Such a huge investment in Shanghai will effectively stimulate rapid economic growth. In addition to the Expo Site, other than increased investment in infrastructure construction, the organization of the Expo will also spur growth in social investment. The growth of domestic social investment reflected in many ways: for example in tourism services, hotels, restaurants and other hardware will increase investment in upgrading facilities; in real estate, the Expo will drive the Huangpu River in the real estate development, real estate investment will increase; real estate investment will stimulate the enterprises to increase production enterprises such as building materials, decorating business, increase business investment and other household appliances.
2. Consumption
Expo will be the role of consumption growth mainly reflected held during the Expo. According to “World Expo 2010 Shanghai China will host the report,” the Shanghai World Expo 2010 forecast number of visitors will be between 54.1 million in 3910 for a more optimistic forecast is the number of visitors to more than 70 million people. To be sure, the Expo visitors will be a huge consumer demand groups. Tourists arrived in Shanghai, its consumption of basic necessities will be in Shanghai and surrounding areas will also increase Shanghai in tickets, entertainment, souvenirs and other aspects of consumer income. Expo will be held during the surge in consumption after 2010, Shanghai’s economic and social development have an enormous impact. At the same time, as the “multiplier effect” of the play, a variety of industries will be driven development, employment increased, people’s income will increase. According to microeconomic theory of consumer behavior, increase in income will inevitably bring about growth in consumption, the leading role in terms of consumption can not be ignored.
3. Net outflow
Export of capital is the economic center of one of the main features. World Expo Shanghai will strengthen the economic function of large central city, the Yangtze River Delta and even further enhance the country’s radiation and service capabilities, and the rest of the country’s goods, services, information, elements such as the exchange will be more frequent. Meanwhile, the Expo will also raise the degree of internationalization of Shanghai, Shanghai for foreign enterprises to understand the business provides a good opportunity for Shanghai enterprises to expand exports, and the rest of the world offers many opportunities for exchanges. Many experts believe that the current economic factors Shanghai is still in the accumulation stage. Becoming in the process of international economic center, first of all yes the gathering economic factors stage; And by Yi Ding Guimozhihou, it will Fa Hui Chu strong effect of radiation. In the course of an international economic center, Shanghai to strengthen the service function. Comparison with the economies of scale, services are also very important.

IV, Conclusion

2010 World Expo in Shanghai has a direct role in promoting economic development, it will promote the rapid development of Shanghai’s economic and overall rise, accelerating the formation of Greater Shanghai Metropolitan pace.