Coordinated Regional Economic Development, Remodeling, And Functions Of Local Government

In recent years, development of regional economy and function of local government have become big issues of all fields of our society. By using the concept of interest, administrative region and economic region are organically combined, which is helpful for further discussion on these issues. The interest of local government can be divided into regional interest, organizational interest and individual interest, which is useful to explain the complexity of local government's behavior completely. These two issues, regional economy and function of local government are not important equally, only after the harmonious development of regional economy set as a macro-goal, the function of local government is oriented.The orientation of local government becomes more and more practically meaningful when considering the feature of our era (society transformation, Development of China's West and China's entering WTO). Some of characteristic concepts are mentioned, such as Integrity and Credit, Management of City, Competition and Cooperation.This paper applies such theories as Institutional Economy, Public Choice and Government Interference. System idea and Dynamic-Static method are used. They do help to discuss the issue thoroughly and clearly.This paper is divided into three parts, which includes three processes of raising, analyzing and solving the problem. The first part states we are in the government-oriented period of regional economy, explains the existence and expansion of the difference of regional economy and clarifies the important role of local government on the development of regional economy. After that, the feature and specific performance of the irrational behaviors of local government on the development of regional economy are mainly discussed. The second part analyses the reasons of irrationalbehavior of local government, including such factors as dynamic-static state, institution and conception. The last part clarifies the function of local government on harmonious development of regional economy. That is improvement of inner competence and reinforcement of outer cooperation.