Study Of Government Functions In Investment Promotion

Since reform and opening up, because of the shortage of capital, out of the need for economic development, China's local governments list attracting foreign investment as a primary task, which plays main role in developing local economic development. However, with the acceptance of scientific development theory, people began to realize the importance of co-ordination and development and problems of many direct investments. Analyzed theoretically about the harms: confused functions of the government, violation of the principle of statutory functions, confusion about the relation between government and the market, obey market competition principles. Despite investment promotion has certain historical legitimacy and positive roles, but direct involvement in investment promotion is essentially irrational, leads to the unclear role positioning, the government is overrun and mismatched, is immature performance in the process of functional transformation among the roles of government, market and society. In my view, taking economic performance as the only criteria for evaluation and the core assessing measure on cadre's performance is the direct cause of direct government investment. From the angle of public administration, government holds public authority; it cannot intervene in economic activities, and should create a fair, healthy environment for economic services, and maintain economic order and solve livelihood problems. Under conditions of market economy, government must be a rule-by-law and limited government; governmental main functions are economic regulation, market supervision, social management and public service. The government should create a favorable environment for accelerating market development. From theoretical analysis to the practice of...