A Study On The Regional Conflict&Cooperation And Institutional Innovation

With the development of urbanization and regional integration, regional economy is becoming much more common in the way that the local economies participate in the global division of labor and competition, and the integrated region is gradually becoming the basic unit of economic competition. But at the same time there also emerges a series of regional public problems. All of these problems go beyond the boundaries of administrative divisions. The Beijing-Tianjin-Hebei region has been the focus of attention all over our country because of the frequent environmental problems recently, which makes the realization of Wild China and China dream faces great challenges of the environment. Besides, the development of Beijing-Tianjin-Hebei region, which is the biggest economic center in northern China, plays an important part in narrowing the gap among domestic areas and coordinating regional development. Therefore, the regional cooperation among Beijing, Tianjin and Hebei province has been focused by governments at all levels. Thus it can be seen that regional coorpation in the Beijing-Tianjin-Hebei region has become an irresistible trend. However, the deficiencies of the central government management system and the lack of cooperation mechanism among local governments, which bring a lot of bad consequences sucha as conflicts in the fields of strategic planning, industrial projects, infrastructure construction, the resources and environment, become the major institutional barriers of the regional cooperation in the Beijing-Tianjin-Hebei region. Therefore, it is of great significance that how to break through the barriers, avoid the regional conflicts and promote the regional cooperation to develop itself and promote the competitiveness of the whole country in the world.After reviewing the literature about regional conflict and cooperation, this paper finds that there exist several deficiencies in the current studies as follows. Firstly, the analysis about how the transaction cost influences the regional conflict and cooperation is too general to be systematic. Secondly, the analysis of the government behavior on tax competition is insufficient, ignoring two important factors including political promotion and transaction cost. Therefore, this paper tries to solve the above problems in Beijing-Tianjin-Hebei region and starts its exploration from theory to practice. In order to eradicate the institutional obstacles in the process of regional cooperation in Beijing-Tianjin-Hebei region, this paper puts forward some policy recommendations about institutional innovation. The whole paper is arranged as below.Chapter1is the introduction part. It introduces the literature summary, background and significance of topics, the train of thought, analytical methods, innovations, and the basic conceptions. Chapter2analyses the internal mechanism of the regional conflict and cooperation from the perspectives of both transaction cost and government incentives. It also studies systematically on that how transaction cost influences the regional conflict and cooperation. Chapter3uses the game theory into analysis. Firstly, the relationship of local governments is simply reviewed by this part. Then, four basic models are introduced. Finally, a comprehensive model is introduced to take both the transaction cost and promotion incentives of governments into account. Chapter4compares the resources in Beijing, Tianjin and Hebei province, including factor endowment, economic power and political power. This part is to illustrate the asymmetries among the local governments. Chapter5studies the current situation of the regional conflict and cooperation in the Beijing-Tianjin-Hebei region. Chapter6discussed the institutional obstacles of regional cooperation in the Beijing-Tianjin-Hebei region, which can be divided into two parts as obstacles of management system of the central government and those of the cooperation mechanism among the local governments. Chapter7analyses the dynamism of regional cooperation in the Beijing-Tianjin-Hebei region and puts forward policy recommendations from the aspect of institutional innovation to eradicate the institutional obstacles. Chapter8summarizes the main points and conclusions. Then it debates the deficiencies of the paper and points out the direction to forward efforts.