| Regional coordinated development includes the sustainable development of the internal factors (like resources, environment, population, industry), which is regional coordination. It also includes the narrowing of inter-regional development gap and the elimination of inter-regional interest conflict, which is inter-regional coordination (Wei Hou-kai2009, Fan Heng-shan, Sun Jiu-wen2011). The coordination of inter-provincial economic interest in this paper belongs to inter-regional coordination, focusing on the governmental level. Inter-regional interest coordination should be the main theme of inter-regional coordination (Chen Xiu-shan, Yang Yan2008). To simplify research, this paper will analyze the coordination of economic interest in the provincial (or municipal) governmental level. Without special mention, the inter-provincial coordination in this paper refers to the coordination of inter-provincial economic interest.The Capital Metropolis area includes Beijing, Tianjin and Hebei province, or the so called The Capital Metropolis (Li Guo-ping2004; Tan Wei-ke, Zhao Hong2011; Zhu Er-zhuang2012).The key conflict of the Capital Metropolis is the imbalance of inter-provincial economic interest, which is demonstrated in the following: similar industries and vicious competition, regional market segmentation and local protection, insufficient supply of inter-provincial public goods, polarization between the rich and the poor, ecological deterioration, political performance competition and repeated construction, etc. The direct reason for the imbalance of inter-provincial economic interest is the conflict between the objective needs of regional economic integration and the administrative boundary segmentation, and the basic reason is the bounded rationality of local governments and the imperfections of market. Based on what’s mentioned above, it’s obviously important to set up the coordination mechanism for inter-provincial economic interest among the Capital Metropolis. The theoretical significance of this paper is to break the regional administrative boundary segmentation and the interest curing of local governments, and design the coordination mechanism for inter-provincial economic interest by the intrinsic link of economy to balance the inter-provincial economic interest.This paper uses spatial econometrics Moran’s I and finds out by empirical analysis that in2004, economic spatial agglomeration of the Capital Metropolis only fell on some individual areas like Xicheng district, Haidian district, Chaoyang district, Binhai New Area, Tangshan, Langfang, etc., but in2012, it fell on Haidian district, Chaoyang district, Dongcheng district, Xicheng district, Fengtai district, Shi Jingshan district, Changping district, Shunyi district, Tongzhou district, Daxing district, Gu’an county, Langfang, Wuqing district, Beichen district, Hedong district, Hexi district, Hebei district, Heping district, Nankai district, Hongqiao district, Dongli district, Xiqing district, Jinnan district, Baodi county, Binhai New Area, Tangshan, Zunhua, Xianxi county, Xian’an, Qin Huangdao. Chengde, Shi Jiazhuang, Baoding, etc. In just8years, the spatial spillover effect of the economy of the Capital Metropolis was quite obvious, which has broken the inter-provincial administrative boundaries. Therefore, it seems not reasonable to research on the distribution and coordination of inter-provincial interest based on the research on administrative boundaries but to set up immediately an inter-provincial coordination mechanism which breaks the barriers of administrative boundaries. The spatial spillover is the objective law of economy, which illustrates the necessity of breaking administrative boundaries when doing inter-provincial coordination.Inter-provincial economic interest stresses the inter-regional relationship, focusing on the redistribution of economic interest. It means the exclusive benefits that a specific province (or municipality) gets from other provinces (or municipalities), and falls on the category of the redistribution of social benefits. It is the spatial advantage demonstrated by the incomplete liquidity of productive factors, incomplete competition of the market and the incomplete rationality of local governments, and it takes the form of tax sharing for inter-provincial industry transfer, cost amortization of inter-provincial infrastructure co-building, inter-provincial ecological compensation, etc.Coordination mechanism for inter-provincial economic interests is a long-term mechanism for the transfer and distribution of inter-provincial economic interest, which takes the form of specific joint committee system. It is the rule to solve the dispute of inter-provincial economic interest, the contract among local governments and a function for interest distribution. It is also a process for the redistribution of inter-provincial economic interest where the reputed agency for regional economic coordination is authorized by the country to evaluate the position of region and make quantitative legally decisions. Coordination for inter-provincial economic interest is the redistribution of inter-provincial economic interest, so the equilibrium of this coordination is the equilibrium of this redistribution. The integration of regional evaluation indicators is the precondition of the coordination mechanism for inter-provincial economic interest to break the barriers of administrative boundaries.The inter-provincial economic interest game is strategy dependent, and the coordination for inter-provincial economic interest is just a game. The coordination mechanism for inter-provincial economic interest doesn’t require that the strategy of each region is the best under any circumstance, but is the best compared with that of the opponent. Therefore, Inter-provincial Nash Equilibrium is the path choice of the coordination mechanism for inter-provincial economic interest to break the barriers of administrative boundaries. Inter-provincial Nash equilibrium means that in coordination for inter-provincial economic interest, each game subject cannot and wouldn’t like to change its own strategy unilaterally to increase benefits; each strategy chosen by the individual game subject is the optimal interest distribution compared with those of other regions. In other words, the Nash Equilibrium point must be found to break the segmentation and barriers of administrative boundaries and realize the coordination for inter-provincial economic interest in the market with imperfect competition. It is a good strategy for all.The top-level design of the coordination mechanism for inter-provincial economic interest includes five sub-mechanisms, namely arbitrage mechanism, negotiation mechanism, sharing mechanism, amortization mechanism and compensation mechanism. From the perspective of spatial spillover of regional economies, local governments need to make cross-border and horizontal negotiation through joint meeting of mayors, which is negotiation mechanism; based on incomplete rationality of local governments and the incompleteness of market, the central government needs to set up an authoritative arbitrage authority above local administrative boundaries to make vertical coordination when self-motivated negotiation of local governments cannot reach consensus on some cross-border cooperation and key projects, which is arbitrage mechanism; from the perspective of fiscal and taxation system reform, the horizontal tax sharing mechanism should be set up for cooperation on profitable products, like inter-provincial transfer of industries, which is sharing mechanism; from the perspective of investment and financing mechanism reform, cost amortization mechanism should be established for cooperation on quasi-public goods, like co-building of cross-border infrastructure, which is amortization mechanism; from the perspective of reform on property right system of natural resources, ecological compensation mechanism should be set up through horizontal financial transfer payment for pure public goods, like water, ecological environment, etc., which is compensation mechanism. Among the five sub-mechanisms, arbitrage mechanism and negotiation mechanism demonstrate the form and procedure of coordination while sharing mechanism, amortization mechanism and compensation mechanism show the contents of coordination. Arbitrage mechanism belongs to vertical coordination, ensuring its fairness; negotiation mechanism belongs to horizontal coordination, ensuring its efficiency. Coordination for inter-provincial economic interest should be both vertical and horizontal. The path choice for the inter-provincial economic interest coordination mechanism is vertical and horizontal integration. Only when the five sub-mechanisms work together can they break the barriers of administrative boundaries and make inter-provincial coordination. To ensure its effectiveness, coordination mechanism should be designed in the form of contracts, which endows legal effect on it and ensures its enforceability and rigid binding force. |
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