Research On The Disorderly Competition Of The Grassroots Government In Attracting Investment From The Perspective Of Government Competition Theory

Forty years since the reform and opening up,China’s economy has created an impressive “China miracle” with an average annual growth rate of 9.9%.Government in attracting investment as a major action strategy for all levels of government in China to promote economic development has contributed to this.Government in attracting investment can not only promote the expansion of economic growth,but also increase employment opportunities in the region,promote the construction of infrastructure,and increase local fiscal revenue.However,with the increasing competition in attracting investment,local governments have shown a lot of disorderly competition in attracting investment,which has seriously damaged the sound development of the economy and society.From the perspective of the theoretical analysis of government competition,this paper uses case studies,policy text analysis,and participatory observation to study the problems of disorderly competition in the process of attracting investment from local governments.First of all,from the perspective of competitive strategy of investment attraction,this paper studies the competitive behavior of local government under different competitive strategies and its impact.Second,it analyzes the disorderly competition generated by the grass-roots government in the process of using the four competitive tools under the predatory competitive strategy.In addition,taking K Street in Hangzhou as a case study,the case of K-street protection-based competition strategy was analyzed;based on the statistical analysis of K-street investment,tax revenue,and financial assistance statistics over the past years,K-street was analyzed using the capital effectiveness model.The effect of the sequential competition on the effectiveness of government in attracting investment and analysis of the impact of financial subsidies on street finance and taxation.Finally,it puts forward the path to optimize the unregulated competition for attracting investment by grass-roots governments.The study found that:(1)Under the predatory competition strategy and the protection-based competition strategy,there will be a disorderly competition for government investment.(2)The use of the four kinds of competitive tools under the predatory competition strategy is a direct manifestation of disorderly competition in government in attracting investment.(3)Out-of-order competition affects the effectiveness of attracting investment.(4)The financial subsidy policy can bring considerable financial increments to individual investment entities in the short term,but it will have an adverseimpact on the overall economic development.Finally,suggestions are made for grass-roots governments to attract and attract investment to achieve healthy competition.The first is to actively implement aggressive competitive strategies to create investment resources,the second is to strengthen the standardization of government in attracting investment,the third is to strengthen the overall coordination of investment projects,and the fourth is to formulate a reasonable performance appraisal system.