Research On Local Government Role Transformation In The Process Of Investment

For a long time,investment promotion and capital introduction has become an important means of revitalization of the local economy because of its remarkable benefit.Due to the particularity of China's national conditions,the local government always plays a leading role in the investment promotion and capital introduction to promote the economic development,and usually participates in a series of investment behaviors directly,such as policy establishment,project examination,project negotiation and so on.This investment mode has brought in a large amount of fund,promoted the local economy,and improved the life quality of people.Especially it was quite effective at the beginning of the Reform and Opening.However,the inviting investment,in essence,is a kind of market activity in the economy;it should be separated from official achievement and return to the market.So the mode that local government plays a leading actor doesn't accord with the law of economic development,even it goes against to the transformation of government's functions and the sustainable development of economy.During the progress of inviting investments,this mode has led to a series of problems,such as vicious competition among regions,power rent-seeking,corruption and so on.The root of these problems is the wrong role that the government played in the inviting investment.At present,the government is required to exercise the function of economy adjustment,market supervision,social administration and public service,so the transformation of the role in the investment promotion of government is very necessary and urgent.The government should play a decisive effect in the allocation of resources,the government can change from involved in the investment promotion directly to offering more service.thereby,it can promote the investment became more scientific and systematic.This article adopts the empirical approach,literature data research method,empirical research method,and it expresses the concept of inviting investment,which is based on the domestic and international theory,and it selects W district in Tianjin as an example.The progress of investment development in W district is divided into three stages---beginning,development,and mature stage.This article analyzes the practice,achievements and problems in each state,and researches the role that the government played during inviting investment.During the mature stage,the government should quit the leading position and puts more energy on guidance and service.The article analyzed the reason why the government change the role.Finally,the article further proposes that the local government should redefine its role rightly in the invite investment.In particular,the local governments should be the policy makers and practitioners,market regulator,economic order vindicator and provider for public products and public service.And it raises effective ways to role transformation of local government in investment.