Study On Middle-Provinces Local Governments And Regional Economic Development

The CPC Central Committee Twelve-Five program clearly states that China’s overall strategy and the major functional areas of the regional economic development strategy are to build to meet the requirements of regional equality of basic public services. But in the view of the current situation of China’s regional economic development, regional gaps and the level of development between the regions within the province are still expanding. Non-rational competitive behavior is not uncommon.Decentralization of tax reforms, local officials pursuing maximize performance, resource scarcity are the reasons of the local government competition, which induce the behavior of local governments to be distorted. And it causes negative effects on regional economic development and induces the local government to use the way of irrational competition, such as protection of the interests of the area. Thus, it is necessary and important to boot the competition of local government within a reasonable, moderate framework.Local government competition appears two different types of situation, which are negative and positive-sum games and game theory. Middle-Provinces always play a important role in the economic, social and cultural development of our country.But in recent years, local governments in the central area of competition appears excessive and irrational.To solve the problem, we must regulate the behavior of local government competition to boot it in a rational framework of the legal system, and let it play an active role and promote the development of regional economy in central China.