On The Analyzing The Economic Function Of Government

Investment promotion is the key content of the China's reform and opening-up policy, which plays important role in economic development and the implementation of the policy. Nowadays different regions and department in China have attached unprecedented importance to investment promotion in securing economic development and it has become the significant theme of economic job.Modern socialism countries have the dual function in politics and economy. Along with the function of national defense and domestic stability, socialism countries have the function of economic administration. Macro-policy is implemented by the government to balance the overall economy and improve economic structure and unify the national economy. Investment promotion has become the main battle field of regional economic competition and one of the main economic functions of local government.The investment promotion mode led by local government once played significant role in stimulating regional economy and created many"economic miracles"and"wealth myth". However, the contrast between the mode and the socialist economic market system is increasingly growing. The mode led by government start to be doubted and criticized. In the current phase, the responsibilities taken by the government in investment promotion are unveiling policies, creating atmosphere, improving environment, building platform, providing service and strengthening administration and audit. The key to resolve these problems is speeding up the transformation of government function and providing the whole society with excellent public order and service through strengthening public administration, weakening micro administration and transforming social administration function and finally we do what we should do and don't do what we shouldn't do. Starting with analyzing the economic function of local government,this paper analyze the current situation and the existing problems in investment promotion led by local government and proposes suggestions to deal with the problems.This paper is divided into three parts:the first part mainly discusses the relative concept of local government, government-led and investment promotion as well as the theory of government function, strong government and catching economy.The second part analyzes the development phases and characteristics of investment promotion mode led by government and the existing problems of such mode .the third part analyzes the policies to deal with the problems in investment promotion led by local government and completely discusses how to improve the investment promotion function of local government.