The Research Of Competition Action And Effect Of Local Government In Regional Economic Development

The market is a mechanism for the allocation of resources whose important feature is competition. Competition is an important economic activities among various economic organizations in the social life. With the development of modern socio-economic, competition also penetrated into the field of public administration in the government. In the process of China's rapid economic development, local governments play an increasingly important role and its competition has become fierce. How to effectively play the government's functions to adapt to regional economic development is the starting point in this paper. Competition in the local government transition has its inherent characteristics, how to effectively play the positive effects of competition to promote the regional economic development is the theory and practice which has great significance.The paper firstly defined the basic concepts and functions of local government, and analysis the general behavior of local government. It pointed that based on the realization the goal of maximizing the interests and behavior of Local governments, local government officials and area residents, competition between local governments had been given birth toin China.Second, the paper analyzed the development of China's regional economic and the behavior and its effect which local government choose. Local government is the main body of local governments' competition, the local governments attract resources into local area through system and economic environment in order to enhance the competitiveness of local competition. In the transition from a planned economy to a market economy, the economy also transited from Central-led to local-oriented. Thus, local protectionism, redundant construction, disorderly competition, short-term behavior and acts of opportunism have emerged in the competition of local government. Therefore, regional market segmentation and regional economic disparities has emerged.Finally, the paper take transition local government in western region as an example. It believed that in the development of the western region, especially the establishment of Sichuan and Chongqing comprehensive reform pilot, local governments will facilitate the coordinated development of regional economy, but at the same time, we must take care to avoid industry structure and competition disorder, credit impulse and administrative segmentation, high-speed growth and environmental pollution in the process of local government competition.