The System Research Of Local Government Investment And Financing Platform

The2008global financial crisis led to the international and domestic economicsituation becomes severe. In response to the financial crisis, the government implementeda proactive fiscal policy and moderately loose monetary policy, introduced the four trillioneconomic stimulus plan, and adopt a series of measures to stimulate economic growth. Asa series of measures and policies have stimulated economic growth, the number of thelocal government investment and financing platform grew rapidly. The local governmentinvestment and financing platform has played a great role in promoting for thedevelopment of economy, but also exposed the many problems. How to play the positiverole of investment and financing platform to a great extent, reduce the investment andfinancing platform for the defects caused by the negative influence, and continuousimprove the defects of investment and financing platform, set up to a investment andfinancing system which adapt to market economy system request has become an urgenttask at present.The paper from the system of local government investment and financing platform,analyzes the institutional change of local government investment and financing platform,and using the theory of institutional economics to carried on the thorough analysis of theinternal and external environment, and points out the defects that the local governmentinvestment and financing platform in the external environment and internal operationsystem. Then by constructing a dynamic game model of local government investment andfinancing platform, analyzes the process of game between the commercial bank and thelocal government investment and financing platform from the microscopic view and toresearch on investment and financing platform risk issues. Finally, combining theempirical case of local government investment and financing platform, puts forward thepolicy Suggestions to perfect the local government investment and financing platform.The paper through the analysis of the problems existing in the investment andfinancing platform of local government, mining the deep-seated reasons behind theseproblems, trying to find the theory support from system economics and related disciplines, and make some theory innovation and breakthrough in the study of investment andfinancing platform. We has set up a game model, using the information asymmetry theoryand game theory knowledge, analyzes the process of game between the commercial bankand the local government investment and financing platform from the microscopicview,then through the analysis of explicit incentive mechanism and implicit incentivemechanism, we solve the problem. Through case analysis, in view of a specific investmentand financing platform to carry on the detailed analysis, put forward feasibility of policyrecommendations.