Analysis On The Govenrment’s Role In The Process Of Rural Urbanization

With the development of economy, the process of rural urbanization continues tobe accelerated, which engenders great changes in our country’s vast rural areas.However, the development of China’s rural areas still faces many problems andchallenges, such as the obvious contradiction between urban and rural structure, thecontinuous expanding gap between urban and rural areas, low efficiency ofagricultural production and so on. Moreover, there are some problems such as marketfailure and institutional barriers which appear in the process of rural urbanization.The existence of these problems suggests the necessity for government intervention.Government’s active intervention could accelerate the process of urbanization.Nevertheless, the excessive intervention of government could cause the governmentfailure to function, such as farmers "to be made upstairs", land disputes and otherissues. Therefore, by constructing the analytical framework of the coordination game,in this thesis, the author defined the government’s roles in the process of urbanization,using the method of normative analysis and empirical analysis. The main contents areas follows:Firstly, the author analyzed the the government’s role in the process ofurbanization. Then, the author analyzed the impact of land policy adjustment on thetotal revenue of urbanization by constructing a theoretical analysis model. It wasshowed that the total revenue of urbanization can be increased through institutionalinnovations. Then, the author analyzed the impact of increasing expenditure ofagricultural public goods on farmers’ income by constructing an empirical analysismodel. The results indicated that the revenue of rural collective organizations can beimproved through government’s increasing public goods expenditure, accordinglyimproving the external environment of the game, and guiding the rural collectiveorganizations to participate actively in the process of urbanization.Secondly, basing on the important role of government intervention in the ruralurbanization, the author constructed a coordination game model in which local government and rural collective organizations are the participants. The model wasused to describe the formation of strategic interaction and coordination equilibriumsbetween agents involved. Basing on the investigation of the impact factors onstrategies choice, the author discussed the incentive mechanisms, major types ofcoordination game and then causes of coordination failure. Then this thesis discussedabout how to solve coordination failures theoretically, and provided correspondingsuggestions, such as fabricating communication and mutual trust mechanismsbetween agents involved, increasing external incomes to improve the externalenvironment of the coordination, as well as establishing supervising mechanisms, andso on.Thirdly, basing on the theoretical analysis, the author verified the theoreticalresults through the practical experience of “3-Zone Interaction” in Tianjin. The authoranalyzed the background, the implementation process as well as the operationmechanism of the “3-Zone Interaction” model, and obtained the conclusion thatgovernment intervention can promote the coordinated development of the region, andthe function of the government was defined as “to solve a problem, to achieve twoequilibriums, to ensure coordination of the three aspects”. To evaluate thecoordination effect of rural urbanization, the author constructed an evaluation indexsystem for rural urbanization, and then assessed the coordination effect of economyand social development through the coordination coefficient estimates in rural areas.The results demonstrated that government intervention is favorable for thecoordination development among rural urbanization, industrialization andmodernization of agriculture.Finally, baseing on the above analysis on government functions, we achievedsummaries as follows: rural urbanization is the fundamental method to resolve theissues during the rural development; Government intervention is of great significancefor the smooth development of rural urbanization; The relationship of localgovernment and rural collective organizations is kind of coordination game in theprocess of urbanization, that is to say, the complementary effect of strategy andspillover effect of payment exist in strategic choice between the two agents; thegovernment functions included: Through the supply of public goods to achieve an increase of total revenue in the process of urbanization, through system innovationand active communication with rural collective organizations to build mutual trustmechanisms, thus to reduce the cost of coordination, and to allocate revenue ofurbanization reasonably, through the promotion of regional economy development, toimprove coordination environment and to guide the rural collective organizations toselect the cooperation strategy.