Research On The Function Of Local Government In Investment Promotion

Since China adopted the policy of economic reform and opening-up, attracting foreign investment has become a national advocate and has being actively implemented as a development strategy. Through theoretical arguments and evidence, attracting foreign capital can indeed effectively compensate for the lack of local capital, optimize investment environment, and promote social and economic development. Given China’s current conditions, in order to promote the rapid development of local economy, local government has devoted more attention to investment promotion, setting up specialized investment departments, formulate preferential investment policies, although the behaviors of local governments in general have a positive effect on the economic development, but as most of the investment activities are carried out by local governments, this phenomenon is bound to bring its own shortcomings, with the development of China’s market economy and social progress, how to adjust and limit the investment functions and responsibilities of government departments, scientifically and professionally carry out investment promotion, has become an urgent problem for local government to solve.In order to accurately analyze the position and role of local government, better promote investment, resolve the difficulties encountered, this paper uses J district local government investment promotion practice as a case study, and by combining the author’s accumulated experience in J District Investment Promote Bureau, the paper is divided into6chapters, analyzing the investment status of J district, identifying existing problems, and thus giving suggestions to enhance the functions of J district’s local government:The first chapter describes the background, purpose and significance of the topic and the main ideas and methods used in this paper; reviews and evaluates coherent academic research at home and abroad.The second chapter introduces and defines the concepts and the theoretical basis for the government to attract foreign investment, and defines investment elements, categories and characteristics. Meanwhile, the chapter analyzes the history and development of the Chinese government to attract foreign investment, demonstrates the importance and necessity of government functions in the country’s economic development, introduces the government function theory, the theory of public services and local government’s role in promoting investment, as well as theory for local governments to enhance the role of investment promotion in marketing economy.The third chapter offers the J district’s economic overview and analysis of the status quo and elaborates J district local government’s investment promotion functions.The fourth chapter analyzes the problems and pertaining causes of the J district Investment promotion by utilizing investment theory.The fifth chapter studies, analyzes and summarizes, several investment promotion models of some domestic local governments.The last chapter combines the J district’s economic status quo and the characteristics of the J district with the current investment promotion problems, integrates theory and practice, and offers suggestions to enhance the functions of local government in investment promotion.Currently, J district’s local government and most other domestic local governments almost always implement investment promotion with government-led model, which often leads to surpass and dislocation of government functions and the lack of scientific guidance and professional skills to support investment promotion, thus causing low efficiency and poor performances in terms of promoting economic development. Successful investments need to be supported by variety of factors and conditions. In order to enhance the functions of local government in investment promotion, the marketing theory provides some favorable clues.In this paper, the theory provides a useful reference value for improving investment promotion.