Study Of Role Orientation Of Local Government In Region Economy Competition In China

The wrong place of local government behaving on region economy competition is embodiment at local government contesting for investment item, local protection, and blindness at attracting investment. The wrong place of local government bring severity problem, such as low level redundant construction, inefficiency of resource collocation, enterprises have difficulty in growth because of excess competition; as local government take protection measures, the resource is irrationally collocated, the economic benefit is debased, the corporation depend on government lacking high level competition; local government attracting investment is for developing region economy, but contesting for investment induce severity problem, sacrificing country and resident interest, demolish dignity of law.The author systemically analyzes the behavior of the local government in region economic competition. As all local government make investment decision at maximizing the region interest, excess investment and redundant construction emerge. Especially, the official of local government pursuing the short-term economic target for their own benefit aggravates the degree of the redundant construction and brings local protection. The attracting investment betweenLocal government is similar as curse of gainer in auction theory of game. Even if the investment comes, the finance income of local government is reducing, and the interest of others is damaged. Local government usually implements policy to support corporation for enhancing region economic dominance. Gaining the support from local government corporations come into relying government and reduce aggressive enthusiasm. When corporations are face with drastic competition and cannot gain any help, they will make great enterprising for enhance their dominance. In china, the relationship between central government and local government is consign-agent shipment. Local governments accept central government commission and monitored by central government. Because of the asymmetry between central government and local government, local government pursue the index checked by central government,...