Study On The Benefit-sharing Mechanism In The Local Governments Cooperation

Regional integration has become a general trend of regional economic development, however, the process of regional economic integration in China is relatively slow. Domestic and foreign experience has shown that the cooperation between local governments is a practicable path to resolve the plight of regional development. And it is also an important condition for regional economic integration. To build the park is one of the main forms of cooperation among local governments. Therefore, study of the mechanisms for cooperation in the build park contribute to exploring ways to realize regional economic integration.Firstly, the paper start from the analysis of an actual case in Jiangsu Province, North-South cooperation Park. Pointed out that building a park increases benefits in both sides and makes a great significance to economic integration in Jiangsu. Then described the difficulties faced by North-South cooperation Park.Secondly, with the local government functions and theories of behavioral motivation, and analysis of dynamic mechanism in the North-South cooperation Park. The paper consider that the effect of income increasing is a premise for the cooperation of local governments.Thirdly, through deconstructing the interests constitute of local governments and analysis of the Game between local governments.the paper believe that an equitable distribution of benefits is an effective incentive for the cooperation among local governments, in addition, improving the benefit-sharing mechanisms will become the driving force behind the cooperation of local governments.Finally, This paper continued to discuss the issue of how to build the benefit-sharing mechanisms. Pointed out that we should follow the principles of equitable distribution and incentive compatibility, then establish one institutionalized cooperation rule and design the framework of benefit-sharing mechanisms. Besides, the operation of Cooperation rules and benefit-sharing mechanisms requires to improve the corresponding system and organization as a support.