Research On The Intergovernmental Cooperation Of Yangtze River Delta City Group Based On Contract Theory

With the continuous improvement of the regional economic integration,regional cooperation has been paid more attention by local governments and scholars.The benefits of “1+1>2” mode of regional cooperation also has received recognition.The relationship between regions transfer from competition to cooperation in various fields.The regional cooperation in the economically developed areas,such as the Yangtze River Delta and the Pearl River Delta,has shown a trend of vigorous development,which has provided practical experience for the economic integration of other regions in china.As the basic logic “Lterature Review,Status Measurement,Model Establishment,Model Test and Recommendations ”,this paper takes the Yangtze River Delta city group as an example,collecting 1543 cooperation agreements established between 26 cities there in 2005-2016,into the use of intergovernmental cooperation model with incomplete contract theory and social network analysis method,to study on evolution of intergovernmental cooperation space situation,the structure of the social network,and the effect of interlocal cooperation on the economic scale of the city,for puting forward relevant policy suggestions.First of all,based on the theory of new economic geography and new economic system,this paper reviews domestic and foreign literaturesthe in intergovernmental cooperation,contract theory,transaction cost theory and city scale four aspects,finding that intergovernmental cooperation research in the framework of geographical economics is rare,research on the application of contract theory in macro level such as city group cooperation and regional trade is also relatively scarce.In view of the unavailability of data,empirical research is still insufficient.This paper argues that the intergovernmental cooperation affects the urban economic scale through the resource allocation,and the completeness of agreements determines the effectiveness of inter governmental cooperation.Therefore,this paper takes the Yangtze River Delta as an example,studing the relationship between intergovernmental cooperation,contractual integrity and urban economic scale by combining theory and empirical analysis.Secondly,it analyzes the general situation of intergovernmental cooperation in the Yangtze River Delta urban agglomeration.Statistical analysis of the intergovernmental cooperation agreement shows that: on the one hand,the quantity and quality ofcooperation are improved;on the other hand,areas of cooperation continuously expand,especially the fields of comprehensive economic,financial and technology cooperation.From a regional point of view,Shanghai reached the largest number of intergovernmental agreements,followed by provincial capitals,regional central cities and provincial border cities.Again,this paper constructsts intergovernmental cooperation strength model.Through literature analysis,it measures legal effect of different aggrements so as to consider the intergovernmental agreement completeness.Then this paper adds this factor into the cooperation strength model,geting the mutul cooperation strength value and spatial relation graph based on the Arcgis10.2 software platform between the 26 cities in Yangtze River Delta city.The results show that the Yangtze River Delta intergovernmental cooperation network presents that spatial extension of cooperation continues to expand and sub city groups continue to strengthen and polarize.Competition subject is from a single city to sub city groups.Then,this paper utilizes the cooperation relation matrix to build the 0-1 matrix for social network analysis,analysing individual network of intergovernmental cooperation in four aspects of the overall network density,degree centrality,betweenness centrality and closeness centrality,then using the CONCOR method to get the cooperation network subgroup.The result of degree centrality was similar to the intergovernmental cooperation strength,and most of the cities in the Yangtze River Delta city group began to appear intermediary ability.Cooperation relationship transformed from indirect cooperation into direct contact.Cohesion subgroup analysis can be drawn that: In period of 2005-2007,the Yangtze River Delta city group can be divided into four sub groups: Shanghai and Nanjing metropolitan group,the rest of the Yangtze River Delta core 16 cities group,Anhui province city group and Yancheng,Jinhua,Xuancheng group.In period of 2014-2016,it can be divided into four sub groups: Nanjing and Hefei metropolitan area members(except Xuancheng and Chuzhou)with Shanghai as the core,Taihu area city group,Zhejiang province city groups with Hangzhou as the core and Chizhou-Tongling-Xuancheng city group which doesn't have any relation with the others.Then,through theoretical analysis of the effect of cooperation and the indirect effect of incomplete contract,it proposes an influencial mechanism on city economic scale and puts forward the related hypothesis.Afer that it establishes an econometric model to test the hypothesis with panel data.The results show that intergovernmentalcooperation strength,contract completeness and their coross term are all positive,which shows that the three factors increase the economic scale of the city.Among them,positive cross item shows that the intergovernmental cooperation is strengthened with the completeness of the contract so that the econimic scale of the city is increasing,which verifies the hypothesis that the completeness of the contract has an important influence on the cooperation effect.Finally,according to the Yangtze River Delta intergovernmental cooperation situation and the conclusion of this paper,puts forward relevant policy suggestions from five aspects of boundary effect,system,transaction cost,bureaucracy,government market relations,according to the problems of this paper,put forward somewhere can be further improved.