Analysis On Government Economic Behavior In Less Development District

From market economy existing on, the government' role in economic development has always been the focus of concern for all the economists all the times. And it also became an important subject for schools of economics to be explored, explained and discussed. After World War II, the world has been changed greatly, and there formed a new school of theory - development economics during the economic development process in developing countries. How to make less developed districts extricate themselves from a difficult position? How should government take measures in this market economy? As a typical developing country, our country is facing the pressures of both whole country's development and less developed districts' development. So it's significant to use the experience of ready economic development theory for reference to analyze our government's behavior during transforming period.Under market economy, an effected government is the necessary condition for the economic and social sustainable development. That doesn't mean we need an all-powerful government. Government could contribute to the growth of economy, and it could holdback it meanwhile. As a report from the world bank said: " Government plays a decisive role for a country's economic and social development In community target chasing, government has incomparable potential to effect, push and adjust transforming process. When this ability is brought into play appropriately, the country's economy will be booming, otherwise, it will be ceased to advance."How to make government contribute to but not holdback to the economicWorld Bank: "1997 world development report: government in transmission", Chinese version t, PISS. Beijing Chinese financial economic press, 1997development? That makes people rethink about the function of the government. Being in the market economy transition period, facing the pressure of both country's and district's development, whether does our country need to redefine the scopes and methods of government interference. This article tries to prove that only the limited and effected and market-based government is the necessary condition for economic development.The article analyses from LDD's characteristics, it explains thought and theory of government economic behavior history. Based on that, it discussed developing country's government function of market economy and LDD's government behavior in our country from point of institution analysis. And it brought forth the significance of redefine our country's government function. The first 2 theory chapters back up the last 2 chapters. The last 2 chapters analyses LDD's government economic behavior in China. And it tries to find problems in government interference and give theory proposal. It concludes that: Where the market extends, where should the government's scope draw back.This article consists of 4 chapters.First chapter is introduction. It explains and analyses the LDD in theory; and sums up the thought and theory of government interference in history and from development economics. It gives an elaborated theory background for the coming analysis.The second chapter is the LDD's government economic function in market economy. From the analysis of the specialties and essence of the government's economic function in developing countries, it draws the special function needed in our country.The third chapter is government's economic behavior in LDD. Mainly studied LDD in China, it analyses government behavior from the point of institution and proposed corresponding countermeasures. It also brings out the strategy for the government to develop LDD.The last chapter is the establishment of limited and effected government. On the bases of government failure, it illustrates the necessities of government's function transition. And it also proposed the countermeasures of correct government failure to transmit the government function. At last, it redefines the government function.