The Analysis Of Local Government’s Behavior And Role In Investment Promotion

Investment promotion is one way the local government used for improving economic, it can foster mdustry development, add more employment opportunities and improve public environment. In the early year, local government played an important role in attracting investment, involved directly. With the changes in the economic environment and the needs of industrial development, Government-led investment promotion does not meet market requirements now. Excessive intervention will disrupts the economic environment, hinder economic development, local government need to change the role according to the changed environment.The article analyzed case and resolved the role of local government, from different aspects like, development of different industries, the way of investment promotion, management of industrial park. It point out that the local government need to do the following things:play the guiding role of government, merge the industry and region, improve more innovation abilities for company, construct famous company, built a public service platform for company and improve industry in industrial park. Otherwise, the government behavior influenced by rigid restriction(government function, tax) and soft restriction(reputation, promotion, political performance evaluation). Analyze why government do these things in theory. Finally, summarize the conclusion and provide suggestion for local government.