Chinese Local Government Bad Competition And Its Governance

As China's financial reform as a key element of the start-up and development of decentralization, further highlight the benefits of local government. Local government is a relatively independent interest organization, out of its own interests. In order to attract the inflow area of production factors, inevitably compete with each other, the competition has obvious positive effects. The main ones are: the engine of economic growth started; accelerate the pace of institutional innovation; Promoting public goods structural optimization; Etc. But because China is presently in the transition period, economic and political institutions are imperfect. Competition in the local government there are a lot of bad. Specific such as: duplication of infrastructure construction, local protectionism and preferential policies abuse. These problems arise because there are: The omission of property rights system, the financial system errors, and the biased performance assessment. So should regulate the local governments' competition from: reform of the financial system; Reform performance appraisal system; Reform the system of property rights; Strengthen unified market building several respects.The thesis consists of four parts: Part I , the content of local government competition. Part II, the negative consequences of local government bad competition. Part III, local government bad competition analysis of the reasons. Part IV solution to bad local government competition.