The Research On Function Of Local Government In Attracting Business And Investment

Since reform and opening-up, the local governments at all levels guided by the central government take economic construction as the center,take measures to attract investment in the case of growing demand for capital,set off a new upsurge of attracting investment,our country economy displays sustainable and rapid development tendency. Investment work is the important function of economic management for the local governments in modern market conditions,plays a vital role in economic development and improvement of public interest. All that have been achieved today is the direct result of the local governments at all levels actively working and playing a leading role.The role of the local governments in attracting business and investment is determined by many historical conditions. In early-days of reform and opening-up, the market economic system has not been established yet, capacity of deploying all kinds of resources is wholly owned by the all-powerful government, enterprises are unable to investment independently. The government inevitably is the main-body of investment. With the coming of the 21st century and the continuous development of the market economic system under the condition of the Global Economic Integration, WTO rules require government transform the governmental function and withdrawal direct intervention for microeconomic. The main bodies of investment should give way to enterprises or intermediary organizations, implement market running. Local governments should strengthen macroscopic functions of regulation and control. For example, coordinate economic development, regulate market, maintain order and service society. Our country is in rapid transformation period of economic and social development. The government behavior patterns are alienated by various factors from the historical and modern, home and abroad, central and local. Many local governments don't only back out, but also be keener on getting up the roof, launching delinquent preferential policies, cutting the land prices under, ignoring random occupation of farmland and environment pollution, attracting investment projects blindly and vicious competition between the regions cause serious regional protectionism. All that lower driving effect of investment promotion, thereby, the reasonable function of local governments in attracting investment is the key practical subject of the present academic research.By analyzing related literature on investment and field survey, firstly, this thesis reviewed the concept and content of investment promotion and analyzed the reason and significance of investment promotion. Secondly, analyzed positive effect and negative effect of being lead in investment promotion by government dialectically, illustrated three forms of functions alienated in attracting business and investment, on this basis, explained why the function was alienated. Finally, put forward basic paths and countermeasures on the phenomenon which is absent from governmental duties, mismatches and overrun in attracting business and investment.