The Economic Restructuring Of Local Government Investment Behavior Analysis

Local government investment behavior in addition to the central government to local governments at all levels outside the direct or indirect investment in order to enhance public interests or their own interests. Local government investment includes not only the financial investment, but also including local government expenditures or financial security, bank loans, direct investment (funds, and foreign capital markets, etc.), the total funds invested.Local government investment is the inevitable requirement for the division of the central government and local governments, but also an important means for local governments to perform their functions. Since the beginning of reform and opening up, the rights of the central and decentralized implementation of the tax system, the local government is an independent political and economic benefits. enhance regional economic development responsibilities to local governments so that the investment made external drive. Central government tax and other economic affairs, the local government decentralization makes it possible investment.In the process of China's economic transformation, local government investment in promoting China's economic growth and social actors, investment behavior in the promotion of regional economic growth, optimizing the economic structure, expanding employment, to make up for the market failure, provision of public goods and public services, and so have an irreplaceable role.However, the local government can not become entrepreneurs in the true sense, they did not like entrepreneurs to take investment risks. Entrepreneurs also have different investment criteria and values, not completely to the size of investment income to investment decisions. In fact, the local government often has a strong impulse to the expansion of local government-led investment is not Pareto efficient. Expansion of the scale of investment, the investment structure, investment in low efficiency of investment was the outstanding problems, China's macroeconomic impact on the regional economy and long-term development.Lack the guidance of the concept of scientific development is the fundamental reason causing improper investments by local governments. From a system perspective, the lack of standardization in the financial system, the investment system and the financial system has lagged behind price system defects Local led to the unsatisfactory performance evaluation mechanism in the system of local government investment improper reasons. To achieve rationalization of investment behavior, it is necessary to the scientific development concept as a guide, starting to address the drawbacks in the system related to the re-arrangement of existing systems and innovation and change game rules.