Analysis Of The Effects Of Regional Economic Growth In The Local Government

It has been 25 years since the reform. During these years, China's GDP and GDP per capital are growing at the rates of 9.31 % and 8.19% respectively. That is an inspiring outcome which, in a way, results from the institution change. It's the institution that endows with a persisting power of growth to the economy. But when we talk about the contribution of the institution to the economy, we can't ignore that the local governments are the main provider of the institution and they can influence the growth of the economy of a region by providing the institution. So it's very important to study the effect of the local governments in the growth of the economy.This paper mainly deals with the effect of the local governments to the regional economy. It bases on the institution evolution theory developed by D .C. North and the Endogenous Growth Theory .And using these theories, The author analyzes the local governments' functions in the growth of the regional economy from two sides: the relationship between the institution change, the institution innovation of the local government and the growth of local economic development. Besides the theoretic analysis, in this paper, The author also uses six examples to demonstrate the functions of the local governments. They are Jiangsu province, Zhejiang province, Shanghai City, Jilin province, Heilongjiang province, Liaoning province. Among the six objects, the author departs them into three groups: the first including Jiangsu province, Zhejiang province; and the second including Jilin province, Heilongjiang province, Liaoning province;the third including Shanghai City ,the reason of the department is based on the difference of the rate of the growth of the regional economy at present. By comparing with the effect of the six objects' local governments and the growth of these regions, the author can analyze what kind of the government might result in a comparative positive effect to the growth of the local economy, while what kind of the government might result in a comparative negative effect to the growth of the local economy.and Finally, draw a conclusion: if the local governments trend to administer directly in the microcosmic scopes, the growth of the local economy is more slower; when the local governments trend to administer in macroscopical scopes, the growth of the local...