How Local Government Use Industrial Policy To Promote Local Economic Development

This paper systematically discusses the local government and local economic development linkages, mainly how local government effectively use industrial policies to promote local economic development. China has a vast land and vastly different natural conditions; regional economic and social development is very uneven among the major developing countries. As a representative of national interests, the central government bears responsibility for the benefit of people across the country, often from the overall interests of the formulation and promulgation of industrial policies to the whole social welfare maximization as a guide to action, based on differentiation in both the development of different regions There is bound to be inadequate.When making industrial policy in developing countries, it is impossible to know all walks of life across the country, which may lead to the bias of the industrial policy, and the implementation of industrial policy is bound to damage the interests of certain areas. And local governments understand the standpoint of industrial policy objectives more often than not the national economy as a whole, but within its administrative jurisdiction's economic development, their goal is to implement industrial policies to promote economic prosperity in the region and local fiscal revenue is maximized. Local government is not only the stakeholders, but also a management body. As a stakeholder, local government is trying to develop some more new projects and expand business scale, expanding the region's economic output. Is the local government in the implementation of industrial policies more out of consideration of local interests, and make rational choices, so the central government and local governments of the inevitable emergence of the economic game.In this paper, it uses industrial policy transmission mechanism theory, growth pole theory, game theory, local and central authorities and other relevant theory, to compare cultural differences between Eastern and Western management and the impact of formulation and implementation of industrial policy, analyze the existence of problems and deficiencies in implementation, and do in-depth study on how Chinese local governments effectively use industrial policies to promote local economic development. Through surveys and analysis of the current level of economic development and regional advantages and disadvantages in Lianyungang City, it comes to how Lianyungang implement the national industrial policy, and use its own advantages in location and resources, to develop selective focus areas and key industries, through the growth pole of the pole technology and the diffusion effect, influence and lead the development of surrounding areas and other industries to achieve the overall economy of Lianyungang City leaps and bounds.