Research On Administrative Regions Economic Cooperation In China

Upon entering the 21^st century, affected by the surge of economic globalization andregional economy integration, the domestic regional economic integration has become anunconvertible developing trend. In order to solve the issues which occurred in the developmentof regional economy, such as local protectionism, market dissection, repetitive construction,same structure of industry and business, as well as taking the neighbouring regions asopponents, etc., and to facilitate regional economy healthy, coordinate and sustainabledevelopment, the paper focused on the issues of executive-region economic cooperationwithin an economic zone, by analyzing the cost and benefit of regional economic cooperation,proposed the strategic suggestions of strengthening executive-region economic cooperation,which aimed at the constraint factors confronted. Underling the standpoint of economy, thepaper studied the construction, consolidation and developing motivation of executive-regioneconomic relationship first. Historical and logical analysis, game theory, empirical and normalanalysis methods were employed during the study.The paper proposed that the economic cooperation among executive regions is based onthe joint foundation of natural, market, economics and social cultures, respectively. During thecooperation, the following principles must be followed and stuck to, which go as scientificplanning, reasonable assignment, market orientation, equal participation, government guiding,profit compelling, regulation-guaranteed, etc. It is necessary to establish the cooperative layoutof cooperative interaction, complementary priorities, mutually beneficial and win-win andseeking mutual development. The final and overall aim should be to realize the healthy,coordinated as well as sustainable growth of the executive regional economy.The economic cooperation among executive regions has been developed slowly all alongsince reform and opening to the outside world, till the beginning of 1990^th economiccooperation relationship has made steady progress. Entering the 21^st century, especially, theeconomic cooperation between executive regions has taken on good potential headdevelopment. The ideas of strengthening economic cooperation and speeding up paces foundexpression in different regions' government and enterprises. The economic cooperation amongregions becomes key factor of economic development strategy. As yet there exists a series ofcontradiction and problems in the system and process of cognition; it is the obstacle ofeconomic cooperation in executive regions.Cooperative profit is the essential motivation of executive-region economic cooperation.From the standpoint of trading cost, the advantage of economic cooperation among executiveregions lies in its increasing profit and decreasing cost. The save of trading cost resulted from regional economic cooperation embodies in the save of inner and outside trading cost twoaspects. Cooperation cost mainly includes cooperating environment, which mainly focuses onovercoming local government's "rent-seeking" behavior, and regulation constructing cost, aswell as regulation operating cost. Exactly speaking, the essence of the executive regionaleconomic cooperation is the "cooperative surplus", which is the difference of trading costsaving resulted from regional economic cooperation and the trading cost. Cooperative surplusis the foundation of economic cooperation relationship among the executive regions. Therational distribution of cooperative surplus is the key of maintaining and consolidating regionalcooperation relationship. In order to solve the regional external problem of cooperative profitdistribution, it is necessary to set up "the tripartite reward and punishment system" andeffective regional profit coordinating mechanism.It could strengthen our macroscopic controlling and would become promoting economiccooperation inevitable choice in the administrative regions. The administrative regions'economic cooperation possesses comprehensive characteristics. The cooperation operation willbe constrained and affected by politics, economy, system, culture, ideas and a lot of facts. Tostrengthen economic cooperation of administrative regions has to establish efficient powerfulsystem. It includes regional culture motive force, driving power of reasonable distribution andcooperative surplus. And so does it have influence power of government macroscopiccontrolling.Economic cooperation among executive regions is a comprehensive economic activity. Itsoperation will be affected and constrained by the factors of politics, economy, system, cultureand ideology. It is necessary to establish an effective motivating system, which includes motiveforce of regional culture, driving power of rational distribution of "cooperative surplus",strengthening affecting power of government's macro control, guiding power of localgovernment performance evaluation, as well as sustaining power on regional cooperative byperfect social credit system.