Local Government And Regional Market Interactions

This paper is based on the development of Yiwu Small Merchandise WholesalesMarket,searching the link between the local Government and the market.During themarketization reform,the character of the government also has changed.According tothe constraint condition and the incentive mechanism,Yiwu market is continuechanging its method, Since the1980s,people of Yiwu spontaneoued the idea ofsmall articles of daily market,The Government first defaulted in the political edge tobreak through the taboo enliven.To the1990s, the Government was activelypromoting the construction of market infrastructure, government intervention inmediation making up for the lack of market mechanisms,making the market in thedevelopment of a favorable external environment. To the new century, in accordancewith the regional market demands to participate in international division of labor, andguides the market toward internationalization，the govement promotes the marketcontinues to boom. At every stage of the development of the market,Yiwu govementhas a better grasp of positioning itself, Yiwu local government and market relations,experienced a long-term run-in and the process of mutual adaptation.According to the development of regional marketing,it’s impossible for marketcarring out the market competition, the Government should exert its supplementaryfunction.In the meantime,the market will frustration in the Goverment.these result ininteroperable relationship between the Goverment and the market.With the enhancing of policies of reform and opening to the outside world,theadvantage of developed areas is becoming weak, the Government burdens tooheavily,it makes an important role in macro-control.Local Government should playits better information exchange mechanisms, institutional arrangements advantagessuch as authoritative, system reform of regional economic development power andconstantly improve the Government’s own system of market economy, overcomingmarket mechanisms of regulation of short-term weaknesses. It should play a regional economic development planning lead role. Government needs to playregulation in correcting market failures that occurred in low efficiency of resourceallocation and the role of fair and consistent grasp quality regulation and constructionof credit system.Strengthen Governments with regard to market entry and exitmechanism of institutional arrangements, the market competition is reasonable. LocalGovernments should pay attention to the market infrastructure, goodGovernment-guided intervention, continuing to break through the bottleneck ofrestricting the marketing of health and create a loose macroeconomic environment.Government and the market achieve complementarity of cooperation, mainly notallowing the market to adapt to the Government, but allowing the government toadjust to the market.The Government should focus on changing the functions of itself,regulating the behavior of itself to service Government, the key is to increase localGovernment for socio-economic development in the provision of public services,public policy and public goods.Local Government and regional market is a dynamic game. According toeconomic and social development, establishing a more rational, open and win-winrelationship.