The Evelution Research On Investment Mode Of The Local Government

Constrained by the shortage of domestic funds, Our government set off a wave of investment hot after the reform and opening up. With the reform of the political system, the local government gained the rights of economic autonomy, then dominated the investment activities, become a feature of China, It is undeniable that local government-led investment activities made tremendous achievements, but along with the development of market economy, the attendant problems caused by local government-led investment activities have been arised. For example, Waste of state-owned land resources、unfair market environment and the officials’ economic crime activities, even the“rent-creation”activity. Scholars, especially major in public management area, are more and more concerned about the negative issues of local government-led investment, begin to analyze the reasons from different angles, and then put forward the improved views. Researchers also analyzed the competition between local governments from the perspective of game theory, the core of the analysis is each government, the specific problem is competition among local governments involved in investment activities.Based on the investment theory, path dependence theory and evolutionary game theory, the paper takes the necessity and feasibility of investment that led by local government as the start point. then based on the factors analysis on FDI of Yangtze River Delta, we measure the contribution of FDI from the local government’s policy. Then establish the evolutionary game model of competition among local governments, through the game model, the paper analysis the local government-led way of investment and support from theory angle. Then build the replicator dynamic model to simulate the dominant mechanism by local government. As the external economic and political conditions changed, the dominant mechanism tends to be weaken, the new way of local government participate in the investment comes, Finally, the paper puts forward the corresponding policy recommendations, which can provide theoretical and practical guidance for the developing and planning of the new way of local government participate in the investment in the future.