Research On The Influence Of Government Decision-making Competition On Innovation Investment In New Urbanization

During the process of new urbanization,urban economy has gradually become main carrier of economic growth,and attracting foreign investment is one of the main ways to promote urban economy development.Business innovation investment which is an organic combination of capital,technology,marketing and management gives impetus to regional economy development.Therefore,attracting business innovation investment is an important strategy.However,local government decision-making competition would be led,thus business innovation investment decisions would be affected.Based on the analysis paradigm of unitary government competition,this paper builds duopoly model of local government decision-making competition and business innovation investment.First,this paper analyzes the path through which local government decision-making competition was caused.Second,China's urban agglomeration is divided into three categories,three-stage dynamic relations is analyzed in different stages of urbanization,and the threshold of the turning point is tested empirically and calculated by binary choice and panel data model.Third,the optimal amount of investment,the site selection,the failure identification and exit mechanisms are analyzed,and how to avoid competition and how to reduce the harm are analyzed.Research results show that:(1)there are three paths that cause local government decision-making competition: new urbanization construction,regional economic development and regional people's livelihood construction,and business innovation investment is affected mainly through promotions policy,infrastructure construction and natural resources endowment;(2)the relationship between the two and its growth rate presents three different stages,according to different classification of urban agglomeration,the relationship of dynamic state is different.In urban agglomeration that tertiary industry based and with higher urbanization rate,the state presents to be positive concave,positive convex and negative concave function;in the urban agglomeration that manufacturing-based and with middle urbanization rate,the state presents to be positive convex,positive concave and negative concave function;inurban agglomeration that tourism and agriculture and animal husbandry based and with low urbanization rate,the state presents to be positive concave,positive concave,and negative concave function;(3)the optimal amount has relationship with market demand function under complete information,with risk preference and degree of government decision-making competition under unilateral and bilateral asymmetric information;in terms of site selection,the competition degree has direct relationship with the optimal investment quota,aggressive or protective investments and spillover effects;in terms of investment failure identification and the exit mechanisms,they not only are related with different risk preferences of policy makers,but also have direct relationship with earnings of mergers and acquisitions and the equity under complete information and market clearing price,unilateral asymmetric information,(4)in order to avoid local government decision-making competition,central government can regulate political benefits function,punitive coefficients and coefficients overflow of local government.Central government can reduce the harm through regulating the overall revenue function and budget constraints of local government and increasing the subsidies of aggressive investment and the tax efforts of protection investment.The analysis above provides theoretical guidance for invest site,the optimal investment amount,the identification of investment failure and the exit mechanisms,and provides practical guide for central government to avoid the generation of local government decision-making competition and to reduce the harm.