Behavior Of Local Government Research And Development Of Private Economy In Zhejiang

The continuous increase of the private economy outside the economy system is a significant character in the process of Chinese economy system transformation. When the reform of state-owned enterprises is undergoing the step from decentralizing the power to reforming the ownership, the private economy has developed rapidly in a relatively difficult system environment, and has become the principal increasing source of the whole economic system and a permanent impetus to the marketization of Chinese socialist economic system. The local governments have also played active roles in the process of pushing forward the private economy development. There's an extensive discussion of private economy development and local government behaviors in the present literatures while little is studied profoundly to uncover the internal relationship of the local government behavior and the private economy development.On the basis of the private economic development of Zhejiang province, and through theoretical and positive analysis, this thesis researches into the internal relationship of the local government behavior and the private economy development, and the behavioral differences of local government in different economic development models, in order to enhance people' s comprehension of the historical process of the private economy and government's role during the transformation of Chinese economy.First, this thesis establishes a theoretical analysis framework of the local government behavior and the private economy development. On the basis of defining the private economy connotation and discoursing upon the competitive theory of local government, it puts forward the theoretical model of the relationship between the local government behavior and the private economy. The model explains the relationship of the local government and the private economy under the financial federalism. The model also demonstrates that under certain conditions, the private economy will make an effective stimulus to local governments under financial federalism, and through cooperation and balance between the two parties, it will realize the system change of weakening the political restriction and enhancing the ownership protection. The economic model and researching result established in this thesis develop the explanation of present literaturesupon the process of private economy development, and also provide a new academic analysis vision to the research upon the stimulus source and the action that the local governments promote the private economy development.Based on the theoretical analysis framework of the local government behavior and private economy development, this thesis makes an empirical analysis in the local government behavior and the private economy development under the different economic development models. It makes a study of the pursuance model of the local governmental behavior and a comparative analysis upon the local government behavior under the "Zhejiang Model" and the developed market economic system of USA, and provides a new vision and useful research methods to the study of the local government behavior.This thesis also researches into the developing routes of Zhejiang private economy. It analyzes the developing characteristics of Zhejiang private economy and the evolution route of the private economy. Zhejiang private economy is the result of the gradual reform that was boosted in pursuing the reform precept minimizing the friction costs (political cost) in the course of "emancipating the mind", along with the national system change, characterized by institutional change activated by quasi-market-oriented demand. The development of Zhejiang private economy offers inspirations to institutional change theories.Finally, this thesis makes positive analyses upon Zhejiang local government behavior and the choice of development route of private economy. Since reform and opening up to the outside world, governments in Zhejiang have created a way from governing by non-interference to governing by promotion. The local governments have played a role of protecting and coordination for the private economy development. And they have provided conditions for private economy development on resolving external pressure, protecting private ownership, settling external problems, and providing public services etc. The local governments have also obtained distinct achievements in leading the private economy to carry on the system innovation, and in quickening approving system reform etc. The development of Zhejiang private economy can be regarded as a model that is innovated by private drive and governmental enhancement.