The Impact Analysis On The Local Government Activity And Regional Industry Structuer Convergence

With the deepening of economic reform, we have to build a uniform market on anational scale adjust industrial structure and promote the regional economicdevelopment. In order to analysis on the local government activity and regionalindustrial structure, most of the available literatures are set in the macro-economy tosome promotion incentive system or international trade, so we divides the governmentactivities into negative activity and positive activity, which impact on regionalindustrial structure.The negative government activity means the activities including set heavier taxeson nonlocal companies in order to protect local companies, which will lead to closedmarket. The positive government activity means the activities hammer at improvingeconomic environment which including infrastructure construction and supportingindustrial environment construction, this kind of activity can break the barriers andlead to an open market. We use production substitution effect to analysis the effects onregional industrial structure difference affected by two kinds of government activitiesrespectively, the result is that negative government activities will cause industrialstructure convergence, and positive activities will cause industrial structure divergent.Based on the theory analysis, this article divides our country into three partsincluding east, middle and west areas and then make en empirical analysis. Firstly, weuse the similarity coefficient to measure the industrial structure differences of eacharea and take it as the dependent variable. Secondly, the influence factors of industrialstructure contain resource endowment, transportation condition and degree ofopenness, we take them as independent variable as well as two kinds of governmentactivities and then collect quantized data. Lastly, we build three fixed effect dynamicmodel. The empirical analysis result is consistent with theory analysis.In order to improve regional industrial structure differentiated development better,this article gives some suggestions which contain choosing leading industry rationally,boosting the change of local government functions, building scientific local officialspolitical achievement appraisal system and strengthening local government’sregulating functions on regional economic coordinated growth.