Institutions Selection On The Governance Of Cross-Regional Cooperation Among Local Governments

With the development of marketization and decentralization, the pattern of regional integration gradually formed, while a large number of regional public problems also emerged. Such as protection of cross-regional environmental resource, treatment of emergency public issues, regional social security situation and crime problem, development of local infrastructure, are closely linked with the regional common interests. At the same time, these problems have external effects on specific areas or adjacent areas which go beyond the geographic boundaries of the government system. Single local Government has been unable to supply the cross-regional public services independently. A large number of local governments need to deal with these problems together. In a way, Proliferation of public questions happen going along with the emergence of market opportunism, and has the character of globality in the process of globalization.How to localize themselves in the Horizontal relationship has become a serious problem to local governments at all levels. The relationship between government and the market is relatively vague for a longtime in china. With increasing of the cross-regional economic ties, cross-regional cooperation and competitiveness among local governments continued to deepen. In Practice, the disordered relationship between local governments and central government has become a stumbling block for local governments to develop an all-win situation. So rationalizing and developing the Horizontal relationship of local governments has theoretical and practical significance to promote relations' healthy development of local governments.Horizontal relations between the local governments as a hot topic in the course of the government field, many famous scholars in domestic have discussed these topics. But the majority of literature focuses the study on the relationships of central and local governments. The researches on the horizontal relations' coordination among local governments were very few. At the same time, the perspectives of the existing researches on the cross-regional cooperation among local governments were narrow. Some perspectives mainly focused on regional economics, geography, management science and law, and the comprehensive literature which is studied in perspective of the new institutional economics theory has not existed yet. It is innovative to apply the transaction cost theory and institutional change theory to the institutions' study of Cross-regional cooperation among local governments. It Not only has academic significance, but also has a guiding role in practice. On the one hand, it has opened up a new perspective on the study of regional management, because institutions are very important component of regional management, researches on the process of institutions' operation have theoretical significance to the cooperation of the local Governments. On the other hand, in practice, the cross-regional cooperation gradually flourish, and breakthrough happened in the Pearl River Delta, Yangtze River Delta, the Bohai Sea region and other regions .However, they also faced a lot of practical problems , and need the guiding of the theories urgently .In this paper, the institution theory, transaction cost theory and institutional changes will be used to analyze the governance of cross-regional public affairs. Full text is divided into six parts: the first chapter, introduce the concept of governance of cross-regional public affairs among local governments, then define the meaning of the institution, finally propose the problem to be solved in this article; Chapter II, Chapter III, Chapter IV, use the institution theory, transaction cost theory and institutional change theory to analyze the problems coming across in the process of institution supplying, institution running , Institutional Changing during the cooperation among cross-regional governments; Chapter V make use of the logic which is from the internal to external to propose the solutions. First of all, construct the institution itself, and then build the external environment of the institutions. Meanwhile the EU regional governance of experience will be learned. Chapter VI, conclusions and the deficiencies of the article.