Industry Group And The Function Of Local Government

The concept of industrial group has become much more important recently during the process of regional economic development and the acceleration of industry group development has turned out to be a meaningful job. By the experience of the pearl river delta area, the Yangtze river delta area and the around bohai area, the above mentioned areas have distinctive industrial group belt respectively. The phenomenon of"specialized county","specialized township"are quite common in the areas with characteristics of industry groups such as Guangzhou and zhejiang. Within the industry group there are numerous small and median sized enterprises under the relationship of cooperation and competition. Traditionally they aimed at the market share of middle and lower commodities production and interdependently got a very strong competing force in the domestic market.Not only thesis analyzes the economic functions of the local governments but also the relationships between regional industry group development and the governments at all levels. The author gives out her point of view such as the concept of industry group and it's characteristics. This paper analyzed the governmental motives of promotion regional industry group development and predicts it's future way.By analyzing it's super advantages from the angle of economics and the reason why products from certain industry group has high performance/price ratio.At the same time, this paper makes it clear that the development of industry group generates strong driving force and has powerful meaning towards regional economic development. This thesis analyzes the pattern of industry groups abroad and elaborates the governmental roles in industry group cultivation in developed countries such as Italy, Japan, America and internal provinces such as Zhejiang, Suzhou, Guangdong. The author is to seek best solutions for industry group development and give out her view of governmental roles in pushing forward industry group growth.On the basis of thorough analyzing, the author believes that the main task of local government is to create an ideal environment which is suitable for all enterprises to start business and initiate innovations. By organically building up relationships between single enterprise and various institutions the government accumulates and strengthens the united competing force of industry group through the work of non-governmental departments by providing all the conveniences. In detail, the government should concentrate itself on policy-making pertaining to local industry and restructure specialized markets. It's also the government's task to build the credit system and develop regional sales promotion. It's also important for the government to provide intermediary services by organizing societies and technical centers.By case study in the final chapters, the author get hints from an analysis of mode and mechanisms both home and abroad, theoretical analysis on the basis of economics also points out the existing problems in Pinghu industry group development and the author gives out her advices to the government.To provide services to those small enterprises in pinghu certainly have practical meaning in driving forward industry group development in pinghu.