Change Of Economic Roles Of The County Governments In The Context Of New-old-drive Shift

So called “New-old-drive Shift” in nowadays China is a strategy and policy that aims at fostering,installing the new drive of economic development and transforming,promoting the old drive of economic development.It is very important action and step to make China's economy to transfer from “high-speed growth” to “high-quality growth”,and also an inevitable requirement to achieve sustainable development.This thesis,firstly,basing on the evolution and logic of the New-classical economic theory(Solow Model)to the New-growth theory(AK Model),explains the universal law that economic growing will shift certainly from exogenous growing to endogenous growing,reveals the inevitability that economic growing is definitely to shift form extensive(old-dive)growing to intensive(new-drive)growing,and thus provides the arguments of the paper with academic evidences and practical claims.Secondly,taking the G County of the Shandong Province as a study case,the author focuses on the problems and reasons existing in performance and change of the economic roles of the county governments of China.Specifically the author by picking up a four-dimension,i.e.macro industry plan,micro factor allocation,infrastructure supply and market regulation,as an analytic framework,has deeply explored the status quo and the issue of role-transferring of the county governments.Then finally,binding theories and practices together,and also according to the policy implementation of “decentralization,administration,service-provision”,the writer has discussed the economic role-change paths of the county governments in the context of new-old-drive shift.The major conclusions includes:(1)the New-classical development model is driven mainly by inputs of capitals,labors,natural resources and so on factors,in which technologic progress is an exogenous variable.Therefore the model cannot overcome the problem of decreasing returns on scale and thus is a type of traditional,extensive as well as old-drive growth.While the new-growth approach and its model discovers an endogenous model of economic growth in which technological progress,creative activities,etc.are assumed as being determined by the individual firms and labors.Thus it is able to acquire increasing returns on scale and so as to achieve new-drive economic growth.(2)In the past 40-year reform and opening-up,China has gained quick economic growing by increasing factor inputs of capitals,labors and resources.At first China concentrated on labor-intensive,export-oriented industries and later depended on capital-intensive manufactures.This actually a new-classical mode of extensive development in which on the one hand the total factor production(TFP)is low and decreasing;and that causes many structural problems on the supply side.(3)When county governments perform their economic roles they tend to conduct planned,static industrial programs,governmental intervene on factor allocation,loose and soft market regulation,and production-preferring public expenditures.The reasons and causes of such problems are “developmental government”,regime and mechanic solidification,cross-over and misplaced role performance,institutional and financial impels.The author argues that aiming at achieving new-old-drive shift for promoting economic growth,to the entire Chinese government,its over-all role be changed from management and control to governance,whereas the local governments should transfer from intervening market to providing service.The author therefore suggests the county governments change their economic roles and follow the routes:(1)change from development-oriented government to service-oriented government;(2)change from static industrial planning to dynamic industrial inducing;(3)change from political factor allocation to market factor allocation;(4)change from soft market regulation to rigid market regulation;(5)change from production-oriented public expenditure to livelihood-oriented public expenditure.