Achievement Induction,Irrational Investment Of Local Government And The Governance Effect Of Government Audit

In recent years,the irrational investment problems of many local governments have become increasingly serious: some projects are seriously over-invested and some projects are seriously under-invested,which has seriously affected the healthy and sustainable development of local economy.The analysis shows that the pursuit of political achievements by local officials may be an important incentive for this problem.Is that true? In order to solve this problem,the central government and relevant departments are striving to solve this problem by strengthening government auditing,constantly promulgating various policies or documents,deepening the audit of economic responsibility of leading cadres,in order to strengthen and improve the restriction and supervision of the exercise of power of leading cadres,and realize the governance of irrational disorder of local government investment.So,is this governance really effective? Obviously,it is of great practical significance to study these two issues.In order to answer the above questions,this paper takes the local governments of 30 provinces in China from 2013 to 2017 as the sample,and empirically tests the inductive effect of government achievement on irrational investment of local governments and the governance effect of government audit on the inductive effect.In order to accomplish this task,the paper is based on the following ideas: based on the results of current situation analysis and the support of related theories,on the basis of further game analysis and two core hypotheses.Firstly,it determines the research samples,measurement models and variable calculation ideas and calculates the key indicators.Secondly,it carries out empirical tests on the two hypotheses and makes the conclusion stable.Finally,according to the conclusions and analysis points,the policy enlightenment is given and the insufficiency of the research is pointed out.In this process,the following three important issues have been solved one by one: firstly,using game theory to analyze the relationship among political achievements,irrational local government investment and government audit;secondly,calculating key indicators;and thirdly,measuring and verifying hypothesis.The results show that:(1)officials' pursuit of achievements does induce the irrationality of local government investment;(2)government audit can restrict the irrationality of local government investment;and(3)the governance of government audit is weak.The reason is that on the one hand,there is a certain deviation in the choice of government auditing indicators.That is to say,the selected indicators based on economic responsibility audit calculation can not completely cover the content of local officials' achievement appraisal.Therefore,the empirical results of government audits show significant governance effects but show weak governance;on the other hand,the treatment and punishment of government audit is insufficient.This not only seriously weakens the accountability effect of audit,but also weakens the influence of government audit on the irrational relationship between achievement and local government investment.Based on the conclusions of the study,there are three policy implications for the governance of irrational local government investment: optimizing the achievement evaluation system;improving the government audit supervision mechanism;and improving the government investment decisionmaking mechanism.There are three piece of innovations in this paper: firstly,the relationship among achievement,irrationality investment of local government and government auditing is interpreted by game theory;secondly,the design and calculation of irrationality of local government investment and achievement measurement index;thirdly,the empirical analysis of the relationship between achievement,irrationality investment of local and government auditing is made by using measurement method.