Study On Factors Of Local Government In The Process Of Chinese Economic Development

From founding of new China to today, great changes have taken place on Chinese economy, and local government plays important role in this process. About the relationship between government power and economic development, according to the debate on the issue, the four main schools of western economic views are different.today, the main point is that government should be coordinated with the market, and the government needs to make up for the failure of market. And Marxist economics thinks government is indispensable in promoting regional balance.Combining the reality of China, the writer analysis the relationship between the central government and the local government, and she thinks that the central policy especially power release has a profound influence on local government’s role in the economy under the vertical political system in our country.And in the planned economy period, the central government mannered the main power, and in the market economy period, the autonomy of local government is expanded.Corresponds to the expansion of the autonomy of local government, the representative of the system drivers are the fiscal and taxation policy and the system of official promotion.From "serving meals to different diners from different pots" to "fiscal all-round responsibility system" to "system of tax distribution", local government become independent benefited statue gradually,and the promotion system largely inspired local government to promote the development of economy. All of these facts played positive roles in the process of rapid development of Chinese economy.Local government contributes greatly to the economic growth,at the same time,the social imbalances should be faced.This paper discusses the power rent-seeking and local protectionism and the lag of public service,and analyzes performance and influence and reasons of these three questions.The writer thinks that there are tow reasons for these question:the negative effect of the fiscal and taxation policy and promotion system,and the absence of local government function.These problems are disadvantageous to social stability,and the value orientation of local government in the process of economic development needs to be fixed.One of the value orientations of local government is correct relationship between central and local. This article believes that strengthening the central authority and building establish beneficial cooperation between the central government and local government mechanism are import for the achievement of good relationship between central and local. And changing the function of local government is another value orientation, and it needs to standardize local government’s economic functions, and strengthen local government’s public service function, furthermore,the scientific development perspective should be insist.