A Study On The Role Of The Government In The Process Of Attracting Foreign Direct Investment

With the economic globalization and international direct investment developing rapidly, FDI has become one of the most important components in national economy. However, many problems still exist in the introduction of FDI, in which the major reason is improper position of the government's role, leading to the abnormal performance in economic function of government, and affects the healthy and sustainable development of the economy. Besides, international capital movement have presented new tendency and the characteristics, which is displayed in the profound change of main body of investment, the content, the form and the constitution of essential factors. After joining the WTO for years, the economic relation between Chinese and the world is becoming closer and closer, the environment the government faced will be broader. This is also a challenge which is proposed to government's economical function, the administrative system, the management pattern and the foreign capital policy. Hence, it is necessary to conduct research on the role position of government which absorbs of foreign direct investment.This article is based on the foundation of existed research, and adopts the method of applying theory to the reality. As to illustrate the problem of role position to our government in the process of absorbing the foreign direct investment. The introduction part mainly introduces the theory, and the significance of government role in introducing foreign direct investment. The second part, in addition, from the historical development angle, reviews the process since the year of reform and open policy which our country has introduced the foreign direct investment, and carefully examines the role and positive function displayed in the different historical stage by government. The third part, analyzing the lately international and domestic trend of foreign capital introduction, then summarizing the problems taking place in the foreign direct investment in our country; the fourth part, according to analysis above, embarking from the government angle, begin to analyze newly appeared failed-adaptation in governmental role position, and to analyze the reason producing these failed-adaptations. The fifth part, proposes the goal of government's position, the practical way, playing what kind of role and function, and further puts forward the related policy proposal. The final conclusion is, in the process of absorbing the foreign direct investment; we must establish a brand for Chinese government in terms of constructing inexpensive, limited, effective and competent government. Furthermore, government should act as the service provider, the decision maker, the leader, and supervisor, thus forms the completed system which absorb and utilize the foreign direct investment policy by our government.