| The optimalization of goverment hierarchy and finance hierarchy is the priority relating to financial system,especially beneath the province.City-Governing-County System of finance,in 1982,had been launched around the China in the hope of stimulating the development of rural area. As time went on, the policy’s side effects had emerged:cities exploiting countrysides,in spite of the previous historital sound effects.Zhejiang province, since 1953, persists in holding the Province-Governing-County System of finance and decentralizing to the counties withstanding the pressure.this mode led to a robust economy fo counties, small gap between cities and villages.Therefore,some other provinces are struggled to learn the experiences of zhejiang. Weakness of central city owing to the long-term Province-Governing-County policy,however, bounds the industry uprading of Zhejiang,which has been in the stage of midterm or latter industrialization.What will Zhejiang have to do to enhance central city in the time of city-orientation era?To revert the City-Governing-County System of finance or hold on to the Province-Governing-County System of finance? What is the relationship with the central city of Province-Governing-County System?How we should prompt the transforming of counties economy? Analysing these questions will be profitable to convert the economy model of Zhejiang.Firstly, we do a theoretical analysis of the relationship between central city and local financial system, define the meaning of the city center and role. On this basis, the thesis goes on a detailed interpretation of the policy content of Zhejiang Province-Governing-County financial system.Combined with the relationship between Zhejiang economic transformation and city-orientation strategics currently, the essay historically make an objective analysis of the impact of fiscal Zhejiang Provinces Governing Counties on central city development. Jiangsu Province is a typical city-governing-county financial system, emphasising on the development center city, taking a vastly different road development from Zhejiang.After 2000 Jiangsu province continues to strengthen the central city construction by cancelling counties to establish districts. Based on this,this paper selects different comparative data indicators to analyze the performance between the City Managing County and the Province-Governing-County, in order to distinguish which of the two instituions is better in the long run. In recent years, pressured by economic restructuring, the central city in Zhejiang is gradually being taken seriously. In this paper, we cary on a empirical analysis of the economic development between Jinhua, Quzhou and Hangzhou, Ningbo where cancelling counties to establish districts is completed after 2000 year.This paper argues that the instituion is not static, the system needs to be adjusted accordingly as economic conditions changes. Province-Governing-County System of finance in the early time in Zhejiang did play an irreplaceable role. In the current economic development circumustances, which is in-the background of urban-oriented era, however, Province-Governing-County System of finance has not been suited to the development of the economic situation,it needs to be changed.The present difficult economic restructuring in Zhejiang, one important reason is lack of regional development growth pole, in other words,a driving central city. Financial Provinces-governing-Counties in the early economic development has first-mover advantages, but the lack of momentum in the current process of economic restructuring. To this end, the financial system of Zhejiang needs to be changed by cancelling counties to establish districts in the near future.The implementation of fiscal institutions city guiding county should be introduced long-termly according to different circumustances of places, to strengthen central city construction. |
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