| County government plays an important role in developing the county economy which is an indispensable part of national economy and contributes greatly to the development of national economy. Thus, it is attached much attention to how to define the county government function in order to make the most of it to develop economy by harmonious development between industry and agriculture, towns and countries, and among society, human and nature in county economy.In economic market, the relation of government and market is a hot topic in theoretical circle. By now, the study on government function is predicated on the high-developed market economy and balanced economic development. This thesis proposes the viewpoint theoretically on function of county government and sets the pattern of studying the function of it, ie, the action→conduct→function of county government, based on the overall study of foreign and Chinese theory of government function and market failure. By using Microeconomics, Neoinstitution and Development Economics, the dissertation refers the county government as a behavior body and an institutional unit in the developing market economy of which the institution is being perfected and the economy is being developed, and analyzes the effect and conduct of county government in county economy so that its function is detailedly related in county economy.The content covers 3 parts as follows:The first parts consisting of first and second chapters briefly gives account to the importance of studying the function of county government, reviews the theory home and abroad about government function, and deals with the development of county, the connotation, characteristics, trend of county and effect of county government on county economy so as to set the base for studying the function of county government,The second part composed of the third-eighth chapters, which , taking Zhucheng, Shouguang, Huantai, Feicheng and Zhangqiu as examples, focuses on innovation of market institution, promotion of economy development, strengthening of effective competition, correction of external economic effect and supply of public goods, summarizes the basic, guiding, organizational, regulatory and complementary function of county government in developing the county. The basic function of county government is to perfect the configuration of market economy system to create basic conditions for the performance of market system by institutional innovation; the guiding function refers to the one that county government creates the development plans, strategies, policies and economic levers to promote the agricultural modernization, county industrialization,and urbanization for driving the county developmant; organizational function means that county government carries out the correct measures of industrial organization to avoid infavorable impact of overcompetition on economy and to improve the development and competitivity; regulatory function performs when county government regulates the conducts of market bodies by economic, legislative and administrative means to solve the externality and to sustain the development; and the complementory function acts on market by government supplying the public goods and harmonizing the social development. By analyzing the functions above, this part also reveals that the motivation and target of county government are to make the most of market mechanism, to speed up the economic development and to increase the social welfare. In addition, it introduces the manifestation of market failure by absence, nominal, dislocation, overstepping and occupation of the function by county government to display the characteristics of government as economic agent, which is the critical factor of failure of county government.The third part is the ninth chapter which takes the design of the function of county government in developing the county economy as core by levels:The first level analyzes the function theory of county to determine the two boundaries of it: starting line, ie, market failure and finishing line, ie, government failure. Then it concludes that the economic conduct of county economy is to pursue the maximization of social welfare and its own benefit which are the two poles of the conduct of county government to limit the frame of government function which performs between two lines and two poles.The second level, based on the equilibrium theory and on the degree of market function, divides the county economy into ideal, theoretical and realistic state to propose the request for county government that it should be an effective government which orientates toward the one of serving and guiding the development.The third level, according to the request of county economy for county government, defines that the basic functions are to supply the market institution and the public goods, to correct the externality of development and to maintain the market order; the interim functions are to guide the development of county economy, to innovate the market and to cultivate the intermediary agents; and the special functions are to carry out the decision of higher government, to promote the self-transform of government pattern and to realize the comfortably off society jointly with other counties.The fourth level analyzes the objectivity of function transform of county government, of which the key is to transform administration idea, function, conduct and management style, and of which the transform path is to build the limited government, serving government, legal government, effective government and democratic government. Thus, this level designs the innovation of the institution of county government of which the main are to innovate the organization system of government to build a system of flat government, to innovate the administrating conduct to perfect the system of policy-making, responsibility and supervision and raise the efficiency; and to innovate the management system to decrease the administrative levels and arouse the enthusiasm of county government.
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