Research On Local Governments' Investment And Financing In China

The activities of government investing and financing are the important means of realizing the government function, and also are the effective means of government macro-control to the national economy. Consolidation of investing and financing reform has important significance for changing the government function, realizing resource optimal allocation and promoting the national economy development under the condition of socialist market economy. This paper on the basis of comprehensive research of the investing and financing theory at home and abroad starts with the relationship between the government function and the government investing and financing and the relationship between the government investing and financing and the economic growth, and according to the problem of the local government investing and financing mechanisms put forwards the general idea and the target model of the local government investing and financing reform by comparative analysis of government investing and financing mode at home and abroad. This paper also gives reasonable thinking over supervision problems and risk control and put forwards the related policy proposal. The full text carries out research following four aspects:1. Analysis on the relationship among the government function, the government investing and financing and the economic growth. Empirically study on the relationship between the government investing and financing and the economic growth and innovatively research on the paradox of the local government investing and financing in perspective of game theory. The result is that the local government investing is Nash equilibrium under the current condition, but isn't the optimal solution, and local governments investing and financing exist the paradox.2. We get some conclusion and revelation by comparative analysis of government investing and financing mode at home and abroad. Combined with Tianjin case deeply research on the present situation and the evolutionary path of the Chinese government investing and financing, and then conclude the outstanding problems. Comparative analysis on the mode and the characteristic of the advanced countries including the American, Germany and Japanese government investing and financing, study on the regularity and complexity through their development and reality effects. Make great efforts to get some conclusion and revelation according to the problem existing in the investing and financing of local government in china.3. Make thorough research on the local government investing and financing reform and the supervision problem. Combined with the local government development requirement, according to the positive and negative experiences in the government investing and financing management at home and abroad, we put forwards the general idea and the target model of the local government investing and financing. Against the government failure and strengthen the government investing and financing supervision, make a further discussion on the relationship among the management work of state-owned assets, investment company and the state-owned management enterprises of the local government and put forwards the policy proposal of strengthening supervision.4. Make deep research on the risk problem of the local government investing and financing. Risk assessment and risk control become a very important question, because using the financial capital which is the main investment source of the local government to invest and finance would bring financial risk problem. Especially when the repayment period of the government debt is long, the financial risk has the tendency of the accumulating expansion under the influence of the finite tenure of every government and the investment impulsion from the achievement assessment. Research on the risk identification, evaluation process and risk index designing of the local government investing and financing, and put forwards the policy proposal of risk early warning and risk aversion by empirical analysis on the local government investing and financing using the risk evaluation model.