The Analysis Of The Policy Preferences Of The North-west Province-county Government In The Land Supply For Private Enterprises

As an essential productive factor, land plays an important role in the regional development. Local government, serving as the authority to land, controls the leasing power for its administrative monopoly. Currently, private economy has gradually become a vital force for the accelerated growth of Chinese economy. As a main participant in private economy, private enterprises have developed from dispersed management forms to scale management. While making greater contributions to social progress and economic development, however, the regional imbalance in development has led to the immigration of private enterprises to areas where prices of resources are lower. Restrained by environmental carrying capacity and land cost, the immigration resulted transformation in industrial structure in these areas, and further changed the land demand structure. An interesting phenomenon arises here:why does local government offer preferential policy to immigrated private enterprises when it knows they would be harmful to local development in a long term? With regard to this phenomenon, this dissertation will offer an explanation in order to promote land use capacity.The first chapter in this dissertation introduces the background information and a summary of preferential policy theories from both domestic and foreign studies. The second chapter contains basic definitions including public choice theory, political system relationship, system innovation theory and revealed preference theory. Chapter3expounds the preferential analysis framework of local governments from the perspective of both interests and risks for governments and the government officials. Based on the above analysis and considering the restraining factors from the local official perspective, chapter4suggested that the pivotal elements in preferential policy making-the performance income (legal) and risk income of local government officials, and the relation between the two elements. Chapter5exemplifies in a specific case of three county governments-L, Y, W, which have differences but also commons traits in preferential policy for approving land use. Last but not the least, chapter6are suggestions for the unhealthy preferential policy making practices in local government when approving land for private enterprises use, based on the analysis of examinational mechanism in government performance, administrative value orientation of officials, interest coordination mechanism and information exchange system.