Research On The Behaviors In Investing And Financing Of Local Governments In China

With the accelerated pace of China’s urbanization and China’s economic and political system reform, and steadily promoting the cause of socialist construction, ability in local government controlling economy is facing new opportunities and challenges. The local debt problems currently intensified at the background of the development of local government investment and financing activities that has been unable mainly on the local investment and debt financing platform to meet the huge demand for funds, at the same time, the real estate policies to actively promote the local government land financial funds to alleviate the pressure on the possibility of reducing. In addition, there are more and more problems going wrong in the investment and financing platform, local debt problem is more and more serious, a series of files on local government investment and financing platform come out. Moreover, due to its own security commercial banks will take a prudent attitude to local government financing activities, local governments will inevitably be affected by the external financing activities. However, the integrity of China to accelerate the pace of urbanization of the critical period, but also the external economic environment is not perfect now, our stability and promote economic development demand is very strong, the local government to promote the development of local economy, the investment and financing activities have continued their expansion trends. Financing needs and financing difficulties makes the local government investment and financing activities in an awkward position. Research on how to rationalize the local government investment and financing activities, standardize and develop new investment and financing system has become urgent and important.This paper is divided into six parts from the matching point of the local government investment and financing are analyzed. The first part is the introduction, introducing the research background and significance of the research; the second part is about the theory of rent-seeking,that is the base of whole paper; the third part is literature review, from two aspects of foreign literature and domestic literature review on this research topic; the fourth part analyzes the local government investment and financing activities of the counter matching principle phenomenon (including the property rights and the governance of mismatch, the maturity mismatch, gain mismatch, the financing of the main investment subject and mismatch and the business cycle and the political cycle mismatch phenomenon);The fifth part analyzes the extension of the third part of the investment and financing activities of the how to implement the local government, formed the perfect local government investment and financing system; The sixth part puts forward the countermeasures to improve the local government investment and financing, on the base of our policies and institutional obstacles at present; the last part is conclusion and prospect of the research.