Study Of The Government's Economic Functions In The Western Region

After the Reform and Open Policy, West area in China has made tremendous changes. As we all see that the development speed in this area is fast profit from both the supportive policies and supporting measures by the central government and the linkage effect of West Development Strategy although gap still existed between West area and east coastal area. Fact can not be ignored is that local governments play important roles in the development of their regions. The value of West areas' local governments reflected on their economic functions: On one hand, governments guide, induct, control local economic development as a whole so that promote governments' economic functions lead to economic promotion, which goes without saying. On the other hand, inevitably, conflict among benefit clusters always accompany with economic development, which calls for stronger, more effective government capacity to meet it. Therefore, study local government economic functions have not only practical significance but also theories value.Though substantial fruits in studying governments' economic functions made by academic field, which I notice, is study focused on demonstrating concept's connotation and denotation. Do study results guide? Can they conduct practice? Few demonstration care about it and this is what I am focus on.In this paper, I both combine qualitative analysis with quantitative analysis and combine theoretical analysis with empirical research to demonstrate West area local government economic functions painstakingly and take factor analysis as a main tool. The paper begins with exposition of concept's connotation and then discourse upon government economic functions on the premise of considering government economic functions as an organic whole with the purpose of describing structure of government economic functions. Regards the structure as a framework, choose more than one hundred data as samples and 20 index, I establish an empirical research model. I have to say that factor analysis helped me a lot and by taking advantage of this method, my study could abstract valuable factors from multifarious data and which made the model briefer and more effective. At the last part of paper, qualitative analysis is used according to the model established by quantitative analysis to find shortcomings and hidden troubles of West area local government economic functions and then giving suggestions. Till now, the paper constructs a framework according to the model which root in theory and tested by practice.