County Government's Behavior Changes Impact On The Economy

The county economy is to ensure that the basis of China’s economic and social stability and development in the current situation, the county government in many of the problems has become a bottleneck restricting the development of county economy. Previous studies there are two disadvantages:on the one hand, the majority of studies are static, dynamic change of government action rarely involved. Government behavior change is a process, not just study the behavior of government in a period. On the other hand, domestic scholars study the specific behavior of the Government rarely involved. Most scholars from theory to practice, abstract away the economic, social, political system and national conditions of each period, the conclusion is often a further verification of theory. Specific acts of government can enrich the practice of the county economy, the new law to explore the county’s economic development in China.The county’s Government of Jiangsu Province, for example, through the game, the rise and development of competition between the county government, as well as changes in competition among county government action. In the planned economy era. the county government to accept the instructions of the higher levels of government, economic development in accordance with the overall national economic plan, competition is also close to zero. After the reform and opening up, with the opening of the land use rights, local governments have their own resources at their disposal, in particular, in order to cope with financial difficulties, the county government vigorously support the development of township enterprises in order to promote the growth of the county economy and county finances. Market economic system and reform of the tax system, the county government began to attract elements from outside the county to promote the development of county economy. During this time, the county set off infrastructure investment boom, the construction of the park hot. China and the WTO, the domestic unified market system gradually formed into the open era. The county government to change the way they compete to participate in micro-competition by the limited open macro to promote the transition to the use of economic policy-making, estate planning for the county’s economic development. County government from the participants in the competition gradually transformed in order leader.In this paper, Jiangsu Province,12counties and cities in1990-2010panel data evidence of the impact of government action on the county economy. The county government has a role in promoting the growth of the county’s economic behavior of agricultural spending, investment in infrastructure, urban and rural construction. The same time, the article also in Jiangsu Province and other provinces of the county economic development made on the model and the performance comparison counties in Jiangsu Province, the development of a leading position. Combination of theoretical and empirical amount we draw two conclusions:(1) The county government to promote economic development by longitudinal to the horizontal.(2) the county government still has a leading role in the county’s economic development process.To this end, the county government must further open up the economy, support the development of private enterprises and individual economic, but also must speed up the modernization of agriculture and urbanization, through a series of measures in order to continue to energize the county economy.