A Research On The Public Goods Supply Of Cities And Villages In Western China

The economy of China has made great achievements since we adopted policies of reform and opening-up. However, the unbalance of the economy has enlarged the development gap between different regions, cities and villages, industry and agriculture. The development lagging of vast area in middle and western China as well as the sufficiency of domestic demand will restrict the further development of China economy. It is no easy matter for China to achieve her modernization without full economic development in vast area in middle and western China and other rural areas. Therefore, in order to ensure the development of vast area in middle and western China and other rural area, important strategic decisions to plan development between different regions, between cities and villages have made by CPC and Central government.The development gap between cities and villages in western China is also very outstanding. So to make sure the sound development of western china and the whole country, we must coordinate the economic development in urban and rural area of western China. From the angle of public production supply, the gap of public production supply is not only the manifestation but also the main reason of the unbalance of economic development between urban and rural areas. The equalization of basic public production supply plays a vital and irreplaceable role in the coordinated development of urban and rural economy development. Therefore, it has great theoretic significance as well as practical value to study on how to promote coordinated development of western economy in the way of public production supply.Based on the theory of public economy and coordinated development of economy, this paper tries to study on the public production supply in rural and urban areas of western China. Such methods as system analysis, grey correlation analysis, co-integration analysis, literature search, canonical parse and empirical analysis will be employed. The paper includes five sections. The first section involves introduction and the first chapter which gives an overview of literature review. It is also the first section that helps to confine the spectrum and subject of the paper. The second chapter which gives the theory basis of the whole paper, makes up the framework of public production supply and coordination of economic interests and some other relevant theory. The third chapter constitutes the third section. This section tries to raise the questions and origins of public production supply of western cities and villages in light of the system changes of public production supply of rural and urban residents in new China. The fourth part, including chapter four and chapter five, in one hand, evaluates the state of coordination of economic interests in western rural and urban areas. And in the other hand, this parts verifies the relationship between public production supply and the coordinated state of rural and urban economic interests. The sixth chapter, the conclusion of the paper, focus on the coping strategy to the problems raised in the previous chapter. From the above sections, it is easy to follow the thread of my thoughts:confining the spectrum and subject--constructing frame of theory--raising questions--analysis of questions--raising solutions to questions.Based on the frame and the thread of thoughts mentioned above, the main contents of this paper are as follows:Chapter zero is the introduction of the paper which not only elaborates background and significance of this research but also clarifies such concepts as public production, public production supply, equalization of public production supply, economic interests, economic interests conflict, economic interests coordination and so on. It is also in this part that the research ideas, the structure of logic as well as the research methods will be introduced, the originality and the existing problems of the paper will be raised.Chapter one is the literature review which centers on the following four aspects:public production supply theory of Marxism and the basic views of economic interests, researches on the differences of urban and rural public production supply at home and abroad, influences of differences of urban and rural public production supply on economic interests and the role the economic development plays in public production supply. The conclusion of the literature review includes the following parts correspondingly: it is of directive significance to use public production supply theory of Marxism and the basic views of economic interests to construct the theory of public production supply and to coordinate economic interests; there are a lot of insufficiencies both in contents and methods of research on relationship between public production supply and rural and urban economic interests. Those research insufficiencies especially the insufficiencies in China offer space for this paper.The second chapter provided a theoretical framework of public production supply and coordination of economic interests and some other relevant theory. This section mainly clarifies theoretic problems in the following three aspects. That is, the relevant theory on public production supply; the general theory on conflict of economic interests and coordination of economic interests; the principle of interaction between conflict of economic interests and coordination of economic interests. This chapter also makes clear the types of public production, the modes of public production supply, the system and its combination of public production supply. Then, based on the public products supply and economic interest coordination of theoretical analysis framework, put forward two theoretical assumptions:western urban and rural public product supply difference is restricted by the western urban and rural economic interest coordination state of important factors, Western urban and rural economic interest coordination state affecting the western rural public product supply equal status.The third chapter shows the changes of supply system of public goods of Chinese citizen and its present situation. It works over four aspects:formations of binary public goods supply systems of cities and countryside, changes in both systems since Opening and Reform, the problems in present supply system, and causes for the different supplies of city and countryside. Since the founding of The People's Republic of China, the binary supply system of public goods existed and continually develops in the new era. The difference of goods supply enlarges further after Opening and Reform. The system reason is the city biased tendency and the binary supply system of city and countryside. The financial reason is the low economic development the insufficient funds and resources. Other important reasons are the vague marginal between government duties and economic rights, the faults of transfer payment, the faults of public goods supply system, the problems in the incentive system of government officers, the low urbanization, and the sparsely populated citizen. The fourth chapter gives the evaluation to the coordination of economic benefit in the western cities and countryside. Two ways are involved in the analyses. First one is to give general evaluation by way of overall analysis method, and second is to evaluate through model by way of grey correlation analysis. According to the evaluation index system of coordination of economic benefit and whole analysis method, the general evaluation result shows the great differences in coordination of economic benefit of the western cities and countryside, the coordinating dynamics, and the coordinating security. The economic benefit is inconsistent. According to the selected economic variable of city and countryside and the grey correlation analysis, the evaluating result shows the economic benefit of the western city and countryside is in first class inconsistence. Apparently, two different methods end the same results. Then, based on the relative theory of public goods supply and economic benefit coordination, and the relevance of economic factors, it infers the important reason of unbalanced economic benefit of city and country:the incoordinated development of economy, the great different supply of public goods, and the malign interaction of two.The fifth chapter provides positive analysis and experimental verification to interrelation between public goods supply and economic benefit of western city and countryside. The positive analysis and experimental verification inspect two hypotheses:different supply of public goods is the important factor restricting coordination of economic benefit of western city and countryside, and economic coordination restricting the equalization of public goods supply. From angels of cointegration and public expense, it shows the public goods supply gives much influence to economic benefit of western city and countryside. The public expense has great effect to total output value of western area in long and short run and long influence to different incomes and consuming level between urban and suburban citizen. And in the long-term impact on, its influence on in GDP growth is not really small, its growth elasticity reaches 0.323076, existing scale remuneration increasing;The influence to urban and rural residents income gap and consumption gap is greater than total investment capital formation and labor force, the role of regression coefficients is 4.675336 and 4.194001 respectively. The public expense is the main financial source for public goods supply in the western area. The positive analysis proves the hypothesis that public goods supply gives much influence to economic benefit coordination of western city and countryside. The historically comparative analysis and case analysis proves that the change in public goods supply system had much effect on the system and quantities of goods. Especially motivated by the plan development of city and countryside, the supply of public facilities and goods of western countryside increases quickly and steadily, the public right and chance of basic public goods to urban citizen are open to village resident, and the reform in plan development of Chengdu and Chongqing works well in the union of city and countryside supply systems. The experimental analysis proves the hypothesis that the economic benefit coordination restricts the public goods supply of western city and countryside.The sixth chapter provides the conclusion and policy. The conclusion .concludes that the economic benefit of western city and countryside is unbalanced; the supplies of public goods of city and countryside have great difference, and the public goods supply in countryside is insufficient; the public goods supply and the coordination of economic benefit restrict each other: the public goods supply influences the economic benefit coordination of western city and countryside, while the economic benefit restricts the public goods supply; under the strategy of union of city and countryside, equalization of basic public goods is one of the important ways to coordinate the economic benefits of city and countryside. There are some important choices to equalization of basic public goods supply of western city and countryside, such as, according to equal and efficient principle of public goods supply, promoting well economic development of western city and countryside, forming public goods supply system to countryside, straightening financial rights and responsibilities, completing financial transfer payment, cultivating market supply system of countryside, stimulating supply of voluntary, creating incentive system of government officer, strengthening decision mechanism of public goods supply, promoting construction and speed of urbanization, etc.There may be innovation from the following aspects:First, the innovation in scope and angel. There is fewer thesis which studies public goods supply from angel of western city and countryside and economic benefit coordination. 5 Second, the innovation in study methods. It avoids single method by applying many methods to public goods supply of western city and countryside, such as system analysis, grey correlation analysis, cointegration analysis, standard analysis, positive analysis, historical comparative analysis, and literature analysis, etc. In both home and abroad studies on relationship of public goods supply and economic benefit of city and countryside, the positive and experimental analysis and grey correlative analysis are less.Third, the innovation in the point of view. One, it discusses the amount of public goods supply, and suggests there is no best amount of supply and only can give roughly according to economic development need and factors restricting the public goods supply. Two, it analyzes theoretically the effect of urbanization and its progress to equalization of basic public goods of city and countryside. It believes that, before medium urbanization, urbanization enlarges the difference in supply between city and countryside, and after medium urbanization, it shortens the difference. Three, it discusses the economic conflict and coordination mechanism, and reveals the public goods supply and economic coordination works over each other. Four, it evaluates economic coordination of western city and countryside with methods of whole analysis and model analysis, and concludes that the economic benefit of western city and countryside is unbalanced.