Research On Government Efficacy In China's Urban Economic Development

The history of world cities shows that the city is an important carrier of modem social economy,politics,technology,culture and social activities,and the development of the city is the primary driving force to promote the progress of the whole national economy.Since the People's Republic of China was established,we carried out large-scale city construction plans,and urban economic development has been greatly improved on the basis of the weak foundation.In 1978,along with the convening of the Third Plenary Session of 11th Central Committee of the Chinese Communist Party and the end of the Cultural Revolution,the city construction ended backwardness and stagnation and entered the rapid development as a result of reform and opening up.Obviously,the process of reform and opening up in China is in essence the process of transformation of economic system from planned economy to market economy.China's economic and social development gained great momentum with the transformation of the economic system,which had significant impact on city development.At the same time,with the increasing pace of opening up to the outside world in depth and breadth,not only the integration of our country economy and the world economy system is being accelerated,and cities have become the stage where regional and international power compete.Under such a background,urban development not only have to coordinate factor endowment inner the city 5 but also systematically examine the factors inside and outside of the city from the view of regional and global competition,better playing its comparative advantage and wining the initiative in the urban development.To examine the development of urban economy of our country according to the history,the relationship between government and market has always been a major factor.Since 1988 the practical circle developed the concept of urban management started the related practice,city operation led by the government has become a key force to promote economic development in the cities of china after nearly 20 years.But at the same time,due to powerful government control,waste of resources,land finance,market distortion and other negative problems increasingly exposed,becoming the main topics of the theoretical criticism.As a result,many scholars believe that the essence of city management is a continuation of the planned economy thinking in the market economy,which is not in conformity with the requirements ofChinese economic transformation.In this context,a lot of studies in academia have begun to criticize the government-dominated urban economic development pattern.Subsequent is attention to the public service-oriented government,suggesting that nature of the city government is to better facilitate city economic development by doing a good job of optimizing development environment,providing quality services,such as economic regulation,market supervision,social management and public services.After several years of theoretical reflection and practical precipitation,the third Plenary Session of the 18th Central Committee of the Chinese Communist Party clearly put forward decisive role of the market and the government regulation based on scientific judgment.The author believes that this argument stresses dual dominance of government and the market rather than a victory of free market economy.In fact,government and the market are not irreconcilable.At least the practice of the developing countries has proved that the market and the government should be complementary and mutually reinforcing.On the one hand,the simulation on the market by government is in accordance with the laws of the market,not against the rules of the market.On the other hand,the market may function disorderly without the top-level design of the government.Against such background,studies on the effect of government on urban economic development of government should merely about government itself,however,the governmental role is the based on the market rules,that is,we would better focus on how to give full play to the role of government in the development of urban economy,and how to play a more conducive market a decisive role,without violating the market effect.In this paper,the author thinks that the government functions in urban economic development should be regarded as an important part of national governance.Because hierarchical agent is significant in Chinese economic system,national governance should ultimately rely on urban management,while the role of urban government in economic development and the decisive role in the market promotion directly determine the process of the national economy development as a whole,the national competitiveness and economic security.From this point of view,this research is very practical and strategic.This paper focuses on the role of the government on urban economic development,which is based on governmental efficacy.Efficacy here means function and effort.That is to say,during the process of urban economic development,what role dose the government plays?What is the real problem?And how to enhance the governmental efficacy?The study is based on the efficacy of the government.That is to say,how does the government play a role in the process of urban economic development?What is the real problem?And how to solve the problem of inefficiency.Through theoretical modeling,it elaborates the dilemma of the local government in the Hierarchical Agency,revealing the root reasons that restrict the city government functions.And by measuring and ranking urban economic development in 288 cities,we examined the role of the government on the development of urban economy with the use of statistic model.It is found that in the different regional economic development stages,the function of government is different.Less developed cities are with more significant impact from government.To further explain the variables of city government function,the author conducted data collection and questionnaire survey in 18 cities in Henan Province.Through the panel data model and classification method,this study analyses in depth the government trust agency,the promotion of local government on the local economic development,satisfaction on government effort,government competence,the level of market effects on the quality and quantity of urban economic development.The results of the study shows that in the aspect of the city's total economic development,government function is worthy of recognition,which is replaceable with market role.Analysis on the quality of urban economic development shows that the government function significantly complements with the market in the areas by government.But in the non-designated area,the relationship is not remarkable,where market dominants.Based on the empirical analysis and of conclusions of field investigation,the author puts forward a concept of selective operation.This is an improvement and development of government-dominant operation,which also emphasizes the decisive role of the market.Therefore,selective operation is an essential way to promote urban economic development,implying that China's urban economic development ideas cannot be a complete copy of the western mature market economy development ideas,completely repelling the role of the government.Consequently,this paper proposes that government's efficacy is the starting point for constructive operation logically,while the central-local governmental relationship and performance evaluation system are the key factors affecting the efficacy of urban government.Ultimately,constructive operation is the most important approach to improve the efficacy of the government.And we should have an overall picture of the relationship between government and market.To be sure,this thesis is preliminary,many of the ideas are not mature yet,and the practice remains to be verified.But the author thinks that facing the problem,based on our national conditions and in accordance with the special practice in China,we need to conduct a comprehensive analysis on Chinses samples.The evolvement from the government-dominated management to the dual-dominance of the government and the market is an important part of the development of China's economic transformation,which is crucial to an upgraded version of the Chinese economy and the enhancement of the city's comprehensive competitiveness.Thus,this thesis though is inadequate,but the problems in the study are unavoidable.Of course,due to my limited knowledge and ability,any suggestions are appreciated.