From Destructive Competition To Cooperative Competition

Since reform and opening-up, competition between Local governments of Changjiang delta has a process from destructive competition change to cooperative competition. The competition among local governments in Changjiang Delta broke out in eighties of the 20th century, which mainly showed as destructive competition and eventually leading to the results of the waste of resources, the distortion of public policy, and the destruction of the single market. In the 21st century, destructive competition between the governments in Changjiang Delta regional gradually shifts to the cooperative Competition. This thesis intends to find the reasons for this transition and build a mode of local government competition. The author believes that after the founding of P.R. China, the country's local governments have experienced three competition stages- recessive limited competition, destructive competition and cooperative competition. In China, the evolution of the local government competition modes is consistent with the transition from planned economy to market economy.In this thesis, we through defining local government's functions to give a range of local government competition, then build a competition mechanism and coordination mechanisms and get a clear understanding about the relationship between competition and coordination in order to achieve the integration of competition and cooperation. Except for ascertaining the components of the cooperative competition, analysis of the mechanism motivations are also necessary. China's local governments mainly confront two sources of pressure- pressure from the higher level governments and pressure from its presidia citizen. From the perspective of local government pressure sources, this thesis also discussed the motivation of local government cooperative competition mechanism. At last, we gave a mode of local government competition.