Research Of The Local Government Behavior In The Chinese Regional Economy Co-operation

The regional economy co-operation is an important way to collocate the regional resource. During these few years, the domestic regional economy co-operation develops quickly. The GDP(Gross Domestic Product) of Around Bohai Sea region, Yangtze River Delta region and Pan-pearl River Delta region is about seventy-five percentage of Chinese GDP. In these there areas, the co-operated field covers every aspect of economy and society, and is changing from element co-operation to institution co-operation. These co-operations make great progress to the regional economic integration and social integration. But some behaviour of these regional local government lead to cut-throat competition, market segmentation, local protectionism, similar industrial structure and other problems which are the obstacles of the regional economy co-operation development. This paper tries to describe and classify the local government behaviour in the regional economy co-operation, aim to realize the progress and difficulties of the local government, find the reasons why the local governments take or not take behaviour, try to give some suggestions to optimize the local government behaviour.The two main fields of the local government economy co-operation are economy administration and social administration which aim at regional economy integration and regional social integration. It is no doubt that the local government makes great affects in foreign investment, transportation integration and industry removement. But the reasons why the local government take that behaviour is the satisfaction of the upper officers and the economic index which will lead to a promotion. It leads to that the co-operation fields are main in economy and lack of the social co-operation which will solve the public problems. At the same time, the local governments compete with each other to get the economic resources and benefits due to the regional benefits. These bottom-line competitions which are the obstacle of the regional economy co-operation will lead to low efficiency of the resources allocation and the public problems can't be solved if there are no proper stimulation and restriction to the local government behaviour.So, this paper suggest to rebuild the stimulation and restriction relationship of the centre government and local governments by improving the fiscal decentralization institution, transfer payment institution and officers institution. Under the market dominance and local government co-operate principle, the local government should encourage the non-government organization and the individual take part in the regional economy co-operation to build the network organazition's governance system. This paper suggest that the local government in the regional economy co-operation should think about the long-term profit, build win-win and profit-profit behaviour motivation, co-operate from the easy and urgent field to hard field, deepen and expand the co-operated field to make sure the element co-operation and the institution co-operation move together. Through optimizing the political system, market economy institution, co-operated agreement and system, strengthening the social and government supervisory to make sure the normalization of local government behaviour, in order to promote the integration of the regional economy and society, finally achieve the regional economy sustainable development, social harmony and stability, people common prosperity.