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Improvement on Investment Attraction Function of Chinese Local Governments

Author: XiangZhe
Tutor: LiJinLong
School: Hunan University
Course: Public Administration
Keywords: Local governments Function of investment attraction Function Fulfillment Function improvement
CLC: F127
Type: Master's thesis
Year: 2009
Downloads: 236
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Abstract


Since the implementation of reform and opening policy in China, local governments, taking investment attraction as an important economic function, have made the utmost endeavors in investment attraction activities. A government dominated model has been gradually formed. Decided by particular social and historical conditions, it played a very significant role in promoting local economic growth and increasing fiscal revenue. However, with the transformation of a planned economy to a socialist market economy and a continuous advancing society, it cannot meet all requirements of the market that plays the major role and many problems popped up resulted by governments’over intervention into investment attraction, a business activity, which is not in accordance with the requirements of Scientific Outlook on Development and Build a Harmonious Society and is not conducive to the sustainable sound development of the local economy and scientific and effective utilization as well as transference of the foreign capital and projects. Thus, improvement on investment attraction function of local governments has become an important haphazard subject.This thesis, investigating the times and development of local governments dominated investment attraction model, elaborates the basis and importance of the local governments’function of investment attraction under particular social and historical circumstances, studies problems of it and figures out the causes accordingly. In addition, we are enlightened by the experience of American local governments in terms of this subject and hold the view that only by functional transference and innovative economic administration can local governments obtain successful investment attraction. In investment attraction activities, local governments should be servants providing service and guarantee rather than conductors directly intervening in economic and social development. Finally, it puts forward measures and suggestions of improving investment attraction function of local governments and tries to find a new model for investment attraction in line with the rule of market economic development and China’s national condition.Our research in this thesis is presented in four parts following Introduction.The first part elaborates the foundation and importance of investment attraction function of local governments. Through research on western investment attraction theories and academic achievements on Chinese activities of Chinese scholars over the past few years, we find out the theoretical and practice foundation for local governments’function of investment attraction and summarize its practical significance with the practical work across China.The second part makes a complete retrospect on developing history of investment attraction of Chinese local governments and sums up characteristics of all stages, experience and problems. We put emphasis on major problems of investment attraction function of Chinese local governments in current economic and social situations and study the basic factors leading to the problems from various angles such as politics, economy and society.The third part offers examples of investment attraction practice of American local governments in their situations, the experience of which enlightens us that only by continuous functional transference and innovative economic administration can local governments successfully fulfill the function of investment attraction.The fourth part discusses the necessity of improvement on investment attraction of the local governments through probing into current domestic and international situations. Taking advantage of initiative experience and achievements made by Pudong New Area of Shanghai in investment attraction work, we bring forth specific measures and suggestions for improving investment attraction function of the local governments in an all-round way.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > The local economy
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