Study Of Government And Business Relation In Less Developed Areas Of China: Based On The Perspective Of Local Development-oriented Mode

The Third plenary session of 18 th central committee put forward that the market should play a decisive role in the allocation of resources,this resolution is conducive to improve the market position.After the new government has been established, for market loosen is the bright spot of government reform.The central government cancel and delegated more than 600 administrative matters since 2013.Shanghai free trade zone means “for market loosen”has been a reality.In this context,the study of government and enterprise relations is necessary not only in theory but also in practice.First of all,development-oriented government mode is perspective of this study,the second,this study combed the ralation of government and market,based on such analysis,the study found out the problems and the harm through the method of Game.the last,the study found out the way for building up healthy relation of government and enterprise.The study found that government and enterprise relations during less developed areas have some characteristics,which include that government intervention enterprise deeply.A large enterprise has huge impact to the fiscal revenue and employment rate of less developed areas.Interest bind exist in the relations between government and enterprise.Government in less developed areas keen to use fiscal revenue help enterprise in crisis,which is different from developed areas.The problems include that the power of allocating resources is taken nuder government,government keen to use administration means intervention in the market,the prominent problem is that government and enterprise put together a interest bind,which went ill with the economic and social development.The internal and outside factors both led to the government and enterprise relations in less developed areas,the internal is pursuit of fiscal revenue increasing,the outside is keen competition under different parts of the country.less developed areas keen to give the enterprise preferential terms to win the competition,this is the less developed areas dominant strategy when they compete against developed areas.which also led to less developed areas in a prisoner’s dilemma.The interactive between less developed areas and local enterprise led to Nash equilibrium,which made the interest bind more strengthen.the backward induction analysis shows that less developed areas will help the enterprise at any cost when the latter in a crisis.The study is innovative in the following areas:First of all,the study perspective is innovation.the second,the study content is innovative,the last,the study method is innovative.