The Study On The Functions Of Local Government In Attracting Foreign Investment

Government-leading attraction of foreign investment has been played a very important role in the regional economy development for many years. However, in the economic and social transitional stage, lacking theoretical guidance and the internal competition between regional governments make Government-leading attraction of foreign investment inefficient.'Crossing the river by feeling the stones'is the true portrayal of the attraction of investment for our regional government till now. This condition wastes lots of resources, gives rise to corruption, and limits the development of our country. And so, studying the theory on the attraction of foreign investment led by regional government has great value for theory development and practical usage.In this dissertation, on the basis of the dynamic relationships between regional government and market, by taking Wuqing District as a case, a district has been developing fast but with no policy advantages, the author studies the border of government economy responsibility and effective measures in the condition of immature capital market. Then, the ways for regional government to decide the role position and system transition in the attraction of foreign investment are discussed. Usually, when talking about the system of investment attraction, there are always debates on whether the government should be in leading position or market be leader. What's more, in chapter four, the author takes an independent factor—social intermediary agents into the ordinary model of'government-market', trying to establish'government-market-social intermediary agents' model. This model is an exploration and beneficial to theory establishment, as well as smoothing fluctuation during investment attraction actions. Finally, in the basis of above-mentioned discussion, through standardizing the relationship between investment attraction style, system and measures, the author gives some practical and useful suggestions, so as to maximize the profit. This new model, which should also be called'effectiveness investment attraction', together with these suggestions, all can be applied in practice and useful to policy makers.