Study On The Interest Model Of Co-Governance Among Local Governments In The West Of China

With the deep development of decentralization and the separate taxation system,local governments not only have become the relatively independent interest s subjects,but also the main driving forces in promoting the regional economic integration. Due tothe effects of national policy and other factors, regional economic integration in theeastern coasts are flourishing, especially, in the Pearl and Yangtze River Deltas, wherethe co-governance among local governments has achieved a breakthrough. Whereas,regional economic integration in the western areas has only crept along and theproblems, such as regional protectionism, the convergence of industrial structure, thedisorder of market economy and all that were so conspicuous that the co-governanceamong local governments in the west areas were trapped in “prisoner’s dilemma”.Therefore, it is becoming a burning problem to strength and standard the co-governanceamong local governments in the west areas.The maximum goal of western local governments, which are “economic men”, isto maximize their self-interest. If co-governance can bring expected benefits to them,they are inclined to adopt the cooperative behaviors. On the contrary, they do not takethese but the vicious competition which will cause both parties to suffer. Therefore,common interests are the logic start of the co-governance among western localgovernments. Besides, the co-governance behavior is conducive to integrate regionalcapabilities and can bring more benefits to each other. In fact, because the profit modelof co-governance among local governments in the west areas is imperfect, it makeslarge differences between real earnings and expected earnings, which lead to awithdrawal of collaboration. Therefore, the key of long-term co-governance amongwestern local governments is to build scientifically reasonable benefit model.This thesis combines the quantitative analysis with qualitative analysis to explorethe problem. Firstly, the author targets the existing issue of co-governance among localgovernments in the west, and then demonstrates the significance of its benefit modelfrom two perspectives of theory and practice. Finally, scientifically reasonable benefit model and guarantee conditions are put forward. The author draws naturally conclusionsbased on the detailed analysis in the following.Firstly, the hypothesis of economic men and resource scarcity in the thesis revealsthat the nature of western local governments is maximum their benefits, which is thefundamental driver of their behaviors.Secondly, the western has unique characteristics; therefore, the co-governanceamong western local governments is more complicated than that in the east and thegovernment should combine actual circumstances and draw (does not copy) successfulexperiences in the process of co-governance.Finally, the profit model includes interest induction factor, interest communicationfactor, interest-binding factor and interest-sharing factor and they can not be separatedfrom each other. Besides, their smooth operation can hardly do without perfectguarantee conditions.The purpose of this paper is that the research result can guide effectively theco-governance among western local governments and further promote the developmentof regional economic integration in the west areas and the whole China.