Research On Function Transformation Of Grass-roots Government In Inviting Investment In China

Since 1970s, inviting investment has been greatly promoted in China with Reform and Opening. Inviting investment leads the opening of the regional economy, promotes multi-party communication about the capital and technology and improves the quality of local people’s lives. However, in final analysis, inviting investment is the product of the market economy. So the government should be service-oriented whose function is to provide public goods and services, and should not intervene in specific economic behavior but do more effort to guide the economic market.. China’s grass-roots government carries out inviting investment, which has a certain historical significance. But, with progress of times, it is imperative for the grass-roots government to be out of the first line of market and be integrated into the inviting investment currently with the identity of the ’referee’. The function transformation of grass-roots government in inviting investment in China has become the focus of government and academia.This article is intended to start with the definition of the grass-roots government’s inviting investment and functions, trying to describe present situation and find problems of China’s grass-roots government in the functions transformation of inviting investment according to the theory of public economics, The article also discusses how to correctly deal with the relationship between government and market, to reasonably determine and play government functions, to regulate government behavior, to position government role and to explore the effective transformation of government functions in the process of market economy development. On the micro level, the article provides the measures and suggestions by analyzing the historical reasons and the main achievements of the China’s grass-roots government in inviting investment with the case of Hongkou District government’s inviting investment, and further seeks the function optimization and breakthrough of the government’s inviting investment.