Study Of The Township Government's Role During The Process Of Trade And Investment Promotion

The Aim of this study: to investigate the mode of local government's behavior during the process of trade and investment promotion and to study the government's role during the future trade and investment promotion for reference to decision makers, through analysis on relative theories and practice.Since trade and investment promotion can facilitate the development of local economy, it is advocated all over the country, and it is also advocated all over the world. The competition of trade promotion is increasingly fierce in each area. This paper attempts to explore and create a scientific theoretical mode based on illustration and analysis on theories and practice of trade and investment promotion by the local governments. This paper starts with the problems appeared in trade and investment promotion and analyzes the activities of trade promotion, based on absorbing both domestic and foreign successful experiences on trade promotion. It focuses on the government's role during the process of trade and investment promotion, and attempts to establish a theoretically fair environment for competition. Besides, it concerns the government's service function and cooperation among governments. In order to make the argumentation of the township government's role more explicit, in the chief chapters, the paper illustrates three kinds of roles of the township government during the process of trade and investment promotion: exceeding power, dislocated power, and absent power. Additionally, reasons for such roles and behaviors are analyzed, and instructive working style and ways during the process of trade and investment promotion are put forward.Exceeding power, dislocated power, and absent power of the township government during the process of trade and investment promotion are discussed in detail. Government's exceeding power refers that the government exceed its original function and authority during the administration process. Government's exceeding power on intervention to trade promotion is mainly reflected in: exceeding power led by mismatch between trade promotion behaviors and the market system and low efficiency of resource allocation. Government's dislocated power during the process of trade and investment promotion refers that the government does what they should not do. Government's absent power refers that the government has not properly played its role as the administrator, or the government has not fulfilled its due liabilities.The critical role of the township government during the trade and investment promotion for projects is determined by historical conditions. In the case of non-established market economy and inability in independent trade and investment promotion, the government has to play as the main director of trade and investment promotion and impose direct administrative intervention. The function of township government is mainly reflected in four aspects: economic coordination, market supervision, order maintenance, and social service. The function of government determines its role. The so-called role refers what the local government should do and what they should not do. Therefore, the suitable role of local government in trade and investment promotion should be: decision maker for the local industries; creator of investment environment; supervisor and defender of the market order; provider of public product. In my opinion, to correctly position the township government's role during the process of trade and investment promotion should pay attention to the following points: as the creator to build a sound environment for investment, the township government needs to cultivate an outstanding entrepreneur team; as the decision maker of local industries, it should make plans for economic development and main points of industrial development based on comparative advantages, so as to promote renovation of business system and mechanism. In Chapter 4 of this paper, empirical analysis on the township government's role during the process of trade and investment promotion for projects is conducted. Taking the government of Kalun County in Jiutai City as example, the present situation and function of Kalun County government during the process of trade and investment promotion for projects has been analyzed, and problems concerning Kalun County government's role in trade and investment promotion like exceeding power, dislocated power, and absent power has also been analyzed. Finally, the role of Kalun County government during the process of trade and investment promotion for projects has been discussed.Problems concerning Kalun County government's role in trade and investment promotion is analyzed and illustrated in detail. Public trade promotion by Kalun government during the process of trade and investment promotion has influenced the optimization of industrial structure, however, trade and investment promotion has created lots of employment opportunities. Implementation of carrier trade promotion greatly optimizes the investment environment, layout industrial zones with a high standard. Problems that Kalun Country government faces during the process of trade and investment promotion is reflected in improper evaluation standard for administration performance, lack of motivation, incompleteness of restriction system, incomplete development of agencies, and inertia of behaviors caused by planed economy system. Besides, it puts forward that the township government should transfer the philosophy during the process of trade and investment promotion for projects, to further free thoughts and renew ideas, as well as insisted on abandoning the philosophy almighty government in the times of planed economy; to alter the evaluation standard for administration performance, to transfer the main task of government into creating a sound investment environment, providing complete administrative and legal services, and motivate the agents. Qualification judgment to the agencies and management of the market entrance should be strengthened, to greatly develop the medium market, integrate medium resources and force them to take relevant legal and economic liabilities; investment environment should be optimized. To consider the investment environment as a practical matter for the opening-up as well as trade and investment promotion, emphasis on policy advantages needs to be transferred to emphasis on environment establishment. Kalun County must make use of its advantages, overcome its disadvantages, hold the opportunities and avoid intimidations in the future work of trade and investment promotion.Finally, it is put forward that the township government should be removed from where the role is dislocated, and make up the gaps where the role lacks, so as to transfer the almighty government into limited government as well as efficient government.