Local Government Investment Promotion And Capital Introduction Problem Research

In recent years, with the continuous development of our economy and the deepening of thereform and opening up, China’s export-oriented economy has obtained fast development. In thecontext of specific national conditions and excellent experience both at home and abroad, to takeadvantage of labor, resources, and market in China, aimed to borrow complementary merits,push mutual improvement and cooperation, the intensity of foreign investment promotion hasbeen strengthened. This has increased China’s overall economy in a big scale and pushed China’sexport-oriented economy towards healthy and stable direction. Investment promotion can bevery effective in primitive capital accumulation, and it plays an important role in bootingregional development. Given the increasingly important role played by investment promotion,local-level governments have paid more and more attention to it, taking it as a developmentpattern featuring smaller payment and better effect.Since the implementation of China’s reforms and opening-up policy, to attract foreigninvestment has become an actively implemented economic development strategy. Investmentpromotion has made up for the shortage of construction funds in our country, optimizedinvestment environment, lifted the service efficiency, promoted the development ofexport-oriented economy, and also advanced the economic development of China. Local-levelgovernments have long been a dominant role in investment promotion. Although, on the whole,this pattern is conducive to investment and the economic development, however, specifically,government-led investment promotion also can give rise to some political malpractice, economicdisadvantages, and social mistake. With the development and improvement of China’s marketeconomy as well as social progress, it is necessary and urgent to transform and redefinegovernment’s role in this aspect. New times and situation have put new requirement ongovernment’s role in investment promotion. Government should fade out from its dominant roleand turn a guide, constructing itself into one of efficiency and limited right. Its work is toformulate policy and system, making investment promotion professional, formal and scientific.This problem is the paper’s main concern.In this thesis, combining economic theory and specific economic activity, historicphenomenon and reality, the author, focusing on the government-led investment promotion,discusses its malpractice, and gives solutions and advices. The thesis comes into five parts. Part1is an introduction, which tells the meaning of thisarticle, analyses domestic and foreign research on this issue, and expounds the trend ofgovernment investment promotion. Part2concerns about China’s investment promotion. In thecontext of China’s economic development, the author argues the inevitability and positive effectof government-led investment promotion, and then, analyses problems brought about in suchaspects as economy, politics, and society. Part3is an analysis of the specific problems. Part4iscase analysis, taking Jining as example to pick out the problems in investment promotion. Part5gives the measures to promote investment in local-level governments, particularly the measuresJining should take in new historic conditions.