An Analysis On The Economic Behavior Of Chinese Local Government

Governments, businesses and residents are the three actors in economic activity, the government's decision-making and behavior of the market economy has a decisive impact. In China, the local government is the central key of the implementation of macroeconomic policies, the central understanding of economic policy, carrying out speed enforcement, as well as macroeconomic policies of local governments decide the extent of implementation. Throughout three decades of China's reform and opening process, it can be said that the strength of economic functions of local governments to fundamentally decide the success of economic development.All along, the local government plays a dual role in the economic development of our country. Because of the specificity of the role of local government, the difference of policy goal must be existed between the central government and the local government. The pursuit of local interests is bound to breed out the soil of"GDP-only","opportunism of local place"and other concepts, of course, goes against the country will lead to the collective interest of some political or economic behavior. Therefore, the norms of the economic behavior of local government and giving full play to economic development at the active role, while avoiding or eliminating the negative role in facilitating the further development of China's economy, is particularly important.In this paper, on the basis of predecessors, I analyzed and explained economic behavior of local governments of the reasons for the deviation from both vertical and horizontal aspects of the deviant behavior of local governments, and attempt to regulate the relationship between central and local governments and improve local government performance evaluation system in regulating the economic activities of local government ,put forward policy recommendations. Article is divided into four parts:In the first part , the introduction of the significance of topics, research ideas and methods, trying to achieve the innovation, review of relevant research results are described. In this paper, I used the game theory and principal-agent theory to analyze the reasons of relevant actors for local governments, hoping to be able to carry out specific operations, as well as clear that the target system to further improve the specific target what should have.In the second part,the economic activities of local government are summarized, including the local history of the evolution of economic behavior, influencing factors, objectives and overall characteristics of the double impact on the economy. The impact of the economic activities of local factors include economic system and socio-cultural traditions,economic development level and scale,local area characteristics and resource endowments, local benefits and the quality of officials; acts of self-utility maximization is the goal; the overall characteristics of a short-term trend, based and non-normative, non-normative, including excessive use of administrative means, the right to market-oriented administration, anti-market. The economic behavior of local governments on the efficiency of the national macro-control has the dual effect of positive and negative.In the third part, I have used the game theory and have given a detailed analysis of deviation of local government from both vertical and horizontal aspects. vertical Economic behavior of local governments is in relation to the relationship between local government and the central government, when lower local governments develop economic policies of higher-level governments, it will necessarily result in local benefits and the overall trade-offs between the benefits, resulting in lower levels of government on the formulation and implementation of economic policies on the game, and this is the so-called"on have measures to counter those". Horizontal economic behavior of local governments is in relation to the relationship between local governments, as an independent subject, under the horizontal relations between local governments face is how to first of all, to safeguard the interests of the region's economy, and the regional economy will inevitably exist between the interests of all kinds of friction, conflict and contradiction between the pursuit of various parts of between the economic interests of the local government's economic competitiveness is inevitable; at the same time, the horizontal relations in the political property of the local government makes the same level of local government officials are also facing competition in the political promotion. In the fourth part, I have given recommendations for the norms of relations between central and local governments and the consummation of the performance evaluation system. The policy recommendations to regulate the relationship between central and local governments are as follows: reduces the levels of government; sets up a sound mechanism of laws and regulations and administrative oversight mechanisms; effective transformation of government functions to guide the local government to build a service-oriented government. Performance evaluation index system for the establishment of the principle of the principle of including service and comprehensive principles, generally accepted scientific principles and the principles of the masses; specific designing of local government performance evaluation index system is necessary to update the concept of the government , from the original emphasis on economic development only into a great importance not only in economic construction and pay more attention to public services and social management, to highlight the people-oriented, the concept of harmonious development. Specific operation, constructive indicators of economy should be moved behind, increase indicators of all-round social progress ,at the same time, increase the indicators of democratic and legal construction of political civilization; the actual implementation of Performance evaluation system should pay attention to combining the internal assessment and external assessment, Persist in the combination of the short-term and long-term evaluation, besides, performance evaluation of local government should pay attention to the actual conditions and avoid "one size fits all".