The Study Of Effect On The Variation Of Public Goods Supply Upon Our Nation's Regional Economy

The disequilibrium of public goods supply is one of the most important reasons that cause regional differences. Based on researches of predecessors, I endeavor to focus the article on the differences of public goods supply among the east, the middle and the west part of our country so as to explore its influence on regional economy development from several angles.First of all, in principle, based on the Tiebout Model and the model of cost function, the article gets inspiration for the supply of our public goods. Then the article analyses the unique characters of public goods, especially regional public goods, and deduces the "Pareto Optimality" conditions of regional public goods. After that, the theoretical sources of shortage as well as excessive supply of public goods are clarified by using Games Theory method.The third part of the article studies the differences among the three parts of China on scale, structure, invest body and constitutional aspects by comparing the date of their investment. It also analyses the reasons which lead to the conditions list above, including regional resource differences, and factors in economic system, regional policy, investment efficiency and investment environment. These differences, which have significant impacts on the quality and working efficiency of labor forces in the region, the circulation of capital, market expansion, the focalization power of the area, and the welfare of citizens, directly or indirectly result in different economical development levels or phases at different areas.In order to more directly demonstrate the situation of disequilibrium among the three areas and its influence on regional economical development, in the empirical part of the article, I attempt to use representative indicators of regional public goods, through collecting data, constructing a panel-data model, hopefully, I can discover the relationship between the representative public goods supply of each province and its GDP level, and fully analyses the impact of various pubic goods on economic development.With regards to the unreasonable regional distribution of public goods in our country and its tendency to enlarge, the article puts forward following policy advices taking into consideration the balance of both fairness and efficiency: improve the system of regional transfer payments, optimize the structure of regional public goods supply, seek proper way of regional public goods supply, promote the nongovernmental business process of regional public goods supply, and improve the present lagging situation of the middle and western parts of our country .