A Research On China Local Governments' Economic Activities In Transition Period

In the course of the transition to socialist market economy system, China's local governments have become the vital economic body under the specific politics and economic condition. China's economic reform is predominated by the government. Local governments have a certain intense Initiative, urgency, and impulsivity on the development of the local economy for the pressure of initiate wish to serve the locals, the competition between the regions, and administrative performance. For different political and economic benefits of different local governments, economic conducts of the local governments can be variable, and hence the government can not perform effectively. Economic issues mainly lie in politics, not just in the economy itself. Local governments'economic activities such as maximum performance of the governments, opportunism, and short time conduction are consistent with supposed rational conducts of economists. Local governments are the main body of reform as well as the object of the reform. It is quite magnificent to regulate the local governments'economic activities.This essay briefly explores such issues as motivation, efficiency and optimization of local governments'economic activities in the period of transition, based on the theory of economics, regional economics, institutional economics, political science and analysis of the cross-points of the subjects. The main text of this essay is divided into four parts: analysis of essence characteristics of the government in the first part; analysis of the political and economic condition of local governments in transition period in the second part; analysis of the local governments'economic activities in transition period in the third part; regulation and optimization of local governments'economic activities in the last part. The local governments'economic activities are regulated according to demand of the democracy. Brining reaction of government, society and citizen can be obtained by adjustment of the relationship between government and society, and growing up the constrain power beyond the government. The final purpose is to form limited government, transparent government, responsible government, and contributive government under the efficient supervision and restriction of taxpayers and beneficiaries from the public product. The regulation of local governments'economic activities still has a long way to go for the present political system, the sound administrative structure, and the influence of the traditional culture. It is essential to notice the hardship and long run of this course, and make a consideration based on the connection of reality restriction and future goal.