The Yangtze River Delta Area Industry Structure Convergence And Local Government Behave

The Yangtze River delta area is the most powerful and energy area in China. It plays an important role in our economical development and has been the engine of our economic development. It is very important to our economical development to study how to keep the healthy development in this area.Firstly this paper analyzes the analogical coefficient in the industry structure of the Yangtze Rive delta,the analogical coefficient between different regions in the industry structure is highly correlative and the economical development is not harmonious in this area;Secondly it points to the character of the industry structure convergence and the reason of how to form the homology of the industry structure,find that the similarity resources gift and economical development tempo between different regions are the main reason。However the cities'development pattern of the Yangtze Rive delta are so similar that every regional government compete drastically for their local benefit each other。Local governments do their best to attract foreign investment no matter how detrimentally to their own industry structure or to their neighbors。The government behavior destroys the market economy regulation, and blocks the reasonable liquidity of product and factors, which leads to the abnormal convergence of industry structure between different regions. Then, this paper studies the reason of abnormal convergence in industry structure by investigating the local government behavior. We find that profits over emphasization and over pursuit in government behavior are the root that causes repeat construction and abnormal convergence in industry structure. The local governments not only compete for industry output and tax income, but also compete for political future. To get advantages in political position, local governments always focus on short benefits instead of the objective economic foundation and industry foundation. As a result, local governments interests in low investment and fast return industries, which lead to industry structure high convergence between different regions.System problem has to be solved by system itself. This paper provides the revolution ideas for industry structure regulation, which from the point of view of government function revolution. Then we study how to process government system revolution, how to improve government function and how to harmonize local government behavior for the industry structure regulation and economic development.