Analysis On The Path Of Local Government’s Economic Function Transformation Under The Background Of Supply-side Structural Reform

The scope of government’s functions is relatively broad,including political,economic,and social functions.Generally speaking,the economic function of government including economic regulation,market supervision,and public services,.President Xi Jinping pointed out: "The reform of the economic system is still the key point of comprehensive deepening reform.Handling the relationship between the government and the market is a key issue of economic structure reform." At present,promoting supply-side structural reform is the main task of the government’s economic work.The main direction of primary mission for Local governments should aim to improve the quality of the supply system,by using structural reforms to promote structural adjustment,promoting the conversion of new and old kinetic energy through marketizaion and law,which aims to meet the ever-changing demand-side requirements.This also put forward new requirements to economic management functions of local governments,which need to set boundaries for the government.This thesis takes the current supply-side structural reform as the background,combined with the current situation of Hebei local government,which aims to analysis how the local government’s economic functions should be adjusted and improved under this background,as well as the way to choose the path.The research plan is: First,the basic theories of supply-side structural reform and the economic functions of local governments.Secondly,by combing the relationship between the supply-side structural reforms and the economic functions of local governments,which discussed the closely relationship between supply-side structural reforms and local government economic functions,mainly includes: the transformation of local government economic functions from production to service,which will promote supply-side structural reform;the transformation of the economic functions of local governments will be conducive to stimulate the innovation of property rights as well market participants.Thirdly,based on the central government’s main task of supply-side structural reform,which means cutting overcapacity,destocking,deleveraging,reducing corporate costs and shoring up weak spots”.At the same time,combining with the situation of Hebei Province,it is clear that the economic functions of local governments will be transformed in the context of supply-side structural reform.The challenges including four aspects: First,the supply-side structural reform requires local governments to focus on key issues;Second,local government should be positive on upgrading the industrial structure;Third,to solve the problem of employee placement requires the local government to strengthen implementation.Fourth,the level of public service supply needs to be effectively improved by local governments.Finally,based on the successful experience of other provinces,and from the perspective of Cobb-Douglas production function,the author analyzes the transformation path of local government economic functions in the context of supply-side structural reform.The transformation path has four main options: Firstly,refined power list system and regulate the operation of power;Secondly,improving government management capabilities through “Internet+” technology;Thridly,broadening financing channels and reduce financing costs;the last option is to guarantee the supply of the system and release policy dividends.Overall,under the background of supply-side structural reform,it is necessary and important for local government to transform economic functions.In the process of the transformation and adjustment and improvement,local governments should firmly focus on the main line of supply-side structural reform,combining the theory and practice,adapting to local conditions,and apply policies to promote the supply-side structural reform effectively.