Study On Goverment Policles In The Dvelopment Of Regional Economy In Shanxi Province

The development of regional economy is the core issue of government decision-makingand one of major issues of academic concern. It is not only related to regional development,but also related to the prosperity and stability of a region and even a country. Thedevelopment of regional economy is affected by many factors; one of the most important onesis government policies, which have an extremely important role in the development ofregional economy. Scientific and reasonable government policies are directly related to thedevelopment of regional economy.This paper first analyzes general theory of the development of regional economy andgovernment policies, and analyzes the government policies in the development of the regionaleconomy in Shanxi Province based on the study of general theory .Then it analyzes the statusand problems of the development of the regional economy in Shanxi Province. At last, itoffers some targeted policy recommendations through the deep analysis of major issues in thedevelopment of regional economy in Shanxi Province.Regional economy of Shanxi Province has made a great development from 1999 to 2008.GDP of Shanxi Province has quadrupled, infrastructure investment has increased, forest coverhas increased, competitive industries based on energy and chemical industries have goodprospect, per capita income of urban resident has grown, housing conditions have beenimproved, and the level of opening has risen. There are also many difficulties in thedevelopment of regional economy while it's developed, Such as more difficulties of thedevelopment of regional economy ,regional market environment is not good enough,unbalanced in the development of regional economy, ecological environmental has beendamaged, lack of innovation in policy and administrative system and other issues. The mainlyreason is that our current capital and labor mobility policy hinders the convergence of inter-provincial income disparity; tax and transfer payment policy on the development ofregional economy in Shanxi also has adverse affection; the preferential policies aboutdevelopment of regional economy in Shanxi Province has led to a certain disparity. Theinnovation of policy and institutional in Shanxi Province is not in the place; the policypreferences led to uneven regional factor inputs in different parts; the policy on environmentprotection is imperfect in the process of economic development; the concept of governmentadministration is somewhat conservative.To promote the development of the regional economy in Shanxi province, the centralgovernment should intensify the financial support for Shanxi, supply moderately inclinedmonetary system and preferential tax system, improve the ecological environment protectionpolicy and enhance policy execution. Shanxi provincial government should be prepared tomaking the development plan of regional economy, and enhance the competitive advantage ofspecial industries, be focused on the coordinated development of all regions, protect theecological environment, and strengthen the regional cooperation.