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A Study On The System Of The Disordered Competition Among Local Governments In Our Country

Posted on:2009-01-20Degree:MasterType:Thesis
Country:ChinaCandidate:C L DingFull Text:PDF
GTID:2166360245951663Subject:Regional Economics
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Since the reform and opening up, the competition of local governments comes into being gradually along with the center government giving up power and profits. For the sake of their interests, especially financial interests, the local governments compete with each other drastically and intent to attract the production factors flowing to their regions. As the core and base of the market mechanism, competition can promote the improvement of the efficiency consumedly, including the competition among governments. Numerous economists thought that the wonder of the growth for twenty years in China is the result of the competition for increase among local governments. But competition is not always beneficial, the growth pattern of the competition among local governments also bring a lot of problems. This article tries to explore the institutional reasons of the local governments'competition, through the analysis of the actuality and the negative effects of the local governments'competition, and then discuss how to standardize the disordered competition among local governments.This article starts with the regulation of the competition among local governments,thinks of the competition among local governments should have competition principles such as justice, legal system, sufficiency, non-discrimination and inhesion restriction. When these principles are not followed in the competition, the competition is disordered. Under this condition, this article makes an analysis for the form and the character of the competition among local governments in our country. The article thought that the competition express mostly on four aspects: public goods competition, revenue competition, the competition of attract business and capital, products and operating factors competition. Then the article summarizes the characters of the competition differ from the generic competition from six aspects like the main body and goal of the competition, the origin of the competition, the measure the competition, the mechanism the competition and the result of the competition. On the base of the analysis of the competition actuality, we found that the competition is out of order and engender a lot of negative effects such as the consistency of the industry structure, repeat construction seriously, the protect of the region, market division and the abuse of the preferential policy and so on.Many kinds of reasons engender the competition among local governments. This article stands on the institutional root, starts the research of the local governments action from the nation theory and institutional transition of the new system economics and spread the analysis on policy, system, legal system and conception separately. On the aspect of the policy factor, the phenomenon such as the excess supply of the preferential policy, local protection and the repeat constructions exist in the competition among local governments. So we use "Prisoner's Dilemma" and"Cock Fighting Game"model of the game theory to analyze, then finds that the Equilibrium Strategy of local governments are all participate the competition which engender the disordered competition. On the other side, the deviated system that evaluates the achievements of local governments, the incomplete finical system and the unclear property right system also become to the reason of the disordered competition among local governments. Aimed at the institutional root of the local governments competition, this article advances the measure of standardize the competition among local governments——institutional innovation, in which governments are the import strength of institutional innovation. As the main body of the institutional innovation, governments drive a forced institutional transition which could get the good and wide effects with low cost. Because of the"Consign——Agent"relationship between the center government and the local governments, the utility function of them are not always identical, the local governments always have the impulsion to maximize their own interests. So we must innovate from the centre government. Through programming the constitution, drive the legal construction, change the function of the local governments, reform the financial system, reform the evaluate system of officers, reform the property right system and correspond the conflict between areas, we can standardize the competition of local governments, maintain the order of the local governments'competition, promote the exertion of the local governments function, achieve the concerted development. Thereby we can drive the economic of all areas prosperously, maximize the welfare of the resident in all areas, and improve the competition advantages of our country.
Keywords/Search Tags:the competition among local governments, negative effects, institutional root, institutional innovation
PDF Full Text Request
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