The Reform Of Administrative Approval And Regional Economic Development ——A Case Study Of The Administrative Service Center

As an important part of the administrative system reform,the reform of administrative approval is an objective requirement to establish and improve the socialist market economy.The reform has been continuously boosted and is still in the ascendant,since it’s launched comprehensively in 2001.How to evaluate the influence of the reform of administrative approval over China’s economic development,so as to provide theoretical and empirical support for the continuous reform,is an important project task for researchers.In this paper,the time and strength of the reform of administrative approval is reflected by the establishment of regional administrative center.How the administrative service center influences the development of regional economies is analyzed from three different perspectives-the efficiency of resource allocation,the industrial structure and the fluctuation of regional economy.In chapter 3,the reform of administrative approval is introduced and explained by dividing it into four stages.Three major characteristics are summarized as central government’s overall planning,local government’s active exploration and the drive from external forces.It’s pointed out that the major effects of the reform are reflected by four aspects-the reduction of approval procedures,the transformation of government functions,the innovation of approval methods and institutionalization of approval.In chapter 4,the analysis is about how the reform of administrative approval influences the resource misallocation.According to the theoretical analysis,the reform of administrative approval boosts the free flow of resources,stimulates the low-efficiency enterprises to improve productivity,and eliminates the low-efficiency enterprises.The three effects mentioned above are relevantly and respectively identified as resource flow effect,incentive effect and market selection effect in this paper.According to the empirical research,the reform of administrative approval could reduce the degree of regional misallocation by about 0.03 standard deviation.According to the mechanism test,the resource flow effect,incentive effect and market selection effect all exist.Further analysis reflects that the incentive effect of the reform of administrative approval over the enterprises with low productivity is mainly due to the reduction of enterprise management cost and the improvement of management efficiency.In chapter 5,the analysis is about how the reform of administrative approval influences the change of regional industrial structure.The ratio of capital-intensive industries versus labor-intensive industries is used to reflect the regional industrial structure.According to the empirical research,the reform of administrative approval significantly reduces the relative share of regional capital-intensive industries.In order to identify more precisely how the reform of administrative approval influences the industrial structure,two competitive explanations,both the approval process and the governmental capture,are excluded in this paper.According to our analysis,the impact of the reform of administrative approval on the change of regional industrial structure ensures that the regional economic development is to be more in line with the regional comparative advantage,and to boost the upgradation of regional industrial structure.Further analysis shows that the effect of the reform of administrative approval over the regional industrial structure is mainly due to the market choice,rather than the enterprise growth.In chapter 6,the analysis is about how the reform of administrative approval influences regional economic fluctuation.Firstly,according to the theoretical analysis,it’s pointed out that the local government’s "helping hand","grabbing hand" and policy uncertainty caused by intervention may aggravate regional economic fluctuations.HP filtering method is used to calculate regional economic fluctuation index.The overall characteristics,industrial characteristics and regional characteristics of economic fluctuation are analyzed by this method in this article.According to the empirical study of static panel data,the reform of administrative approval significantly reduces regional economic fluctuations.According to the regression results about the spatial panel model,the effect of the reform of administrative approval over regional economic fluctuations is significantly negative.According to the mechanism test,the economic fluctuation is refrained when government’s surge is reduced by the reform of administrative approval.