Research On The Operation Of Industrial Investment Guiding Fund In City A

In order to optimize the traditional investment mode of the government,give full play to the guiding role and amplification effect of government funds,improve the efficiency of the use of government funds,and attract social capital into the key industrial fields of the country,there came into being the industrial investment guiding fund.However,the operation effect of industrial investment guiding fund in most areas of China is not satisfactory,with few investment projects and industrial support.Based on this background,through a case study of the local government industrial guiding fund which wasn’t operated successfully,this paper analyzes the factors behind and puts forward suggestions,so as to promote the local government industrial investment guiding fund to step into a sound development track.This paper mainly adopts the method of case study,and uses the theory of information asymmetry and incentive compatibility to analyze the reasons for the unsuccessful operation of the industrial guiding fund in City A,and finally puts forward the corresponding suggestions.This paper is divided into three parts.Firstly,it introduces the problems.Combined with the domestic and foreign research background on the industrial investment guiding fund,it depicts the establishment background,organization form,operation mode and current operation status of the industrial investment guiding fund in City A,and introduces the corresponding problems.Secondly,it analyzes the problems.With the help of the theory of information asymmetry and incentive compatibility,this paper probes into the internal and external factors that lead to the unsuccessful operation of the industrial investment guiding fund in City A.Through case study,it is found that the reason why the industrial investment guiding fund in City A wasn’t operated successfully lies in internal factors like the divergence between the local government and social capital,the lack of an effective incentive and restraint mechanism,the excessive intervention of the local government,and external factors like the competition from provincial industrial investment guiding fund,the weak foundation of local industry,the lack of scientific and technological talents,etc..Finally,it solves the problems and puts forward suggestions to promote a healthier development of the industry investment guiding fund in city A.For internal factors that affect the operation of the fund,this paper suggests to reduce the objective differences between investors,establish an effective incentive and restraint mechanism,improve the risk prevention and control system and strengthen information disclosure.For external factors,this paper suggests to sign cooperation agreements with the provincial industrial investment guiding fund,optimize local industrial structure,increase project reserves and strengthen the cultivation and introduction of local scientific and technological talents.