Role Of Local Government In Inviting Outside Investment And How To Do It

From the economic development across the country in recent years come to see, investment promotion and capital introduction as a important means of economic development, be utilized by local governments at all levels. Investment promotion and capital introduction had an important impact on promoting local economic development, drived fixed investment growth, improved regional industrial structure, promoted economic growth, raised people’s standard of living. But investment promotion and capital introduction also have some negative effects. Introducing the project blindly often sacrifice local interests and damage local resources and environment. Investment promotion and capital introduction as a means of economic development, have both positive roles and negative effects for local economic development. The key is how local governments to use it.In this paper, I combed research results of government functions and investment promotion and capital introduction at home and abroad, retrospected the evolution process of local government functions on investment promotion and capital introduction, all of them as this paper’s theoretical basis. Selecting a typical city on investment promotion and capital introduction-Ordos city, argument the reasonable roles of local governments on investment promotion and capital introduction and how to do it. The paper not only catched sight of the positive roles of investment promotion and capital introduction for Ordos city’s economic development, but also pointed out the problems existing in investment promotion and capital introduction, The most important thing is that putting forward the countermeasures and Suggestions for Ordos city on how to introduce capital and promote investment. This paper is aimed at having the theoretical significance on study of investment promotion and capital introduction and the realistic guiding significance for local governments on how to use investment promotion and capital introduction to develop local economy.