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Local Government Governance: Decentralization, Competition and Transformation

Zhou Ye'an

　　Abstract: Looking at the past 30 years, China's reform and opening up has essentially been a process of decentralization, in which local governments played a key role. Though the existing decentralization in the fiscal sector and competition among local governments has contributed greatly to China's sustained and rapid economic growth, it has brought about many problems due to the extensive growth model, such as economic volatility, waste of resources, and insufficient supply of public goods. To realize economic restructuring, we need to break new ground in innovation. The innovation means more than technological progress, or rather, it is the innovation in decentralization and local government competition. To encourage local governments to realize the transition, an innovation-oriented governance mechanism must be established, which includes reasonable decentralization, healthy competition among local governments and the establishment of a sound functional trans-regional institutions.

　　Keywords: competition among local governments, decentralization, progressive reform, local governance, transformation

　　周業(yè)安，中國人民大學(xué)經(jīng)濟(jì)學(xué)院教授、博導(dǎo)。研究方向?yàn)樾袨楹蛯?shí)驗(yàn)經(jīng)濟(jì)學(xué)、公共經(jīng)濟(jì)學(xué)。主要著作有《創(chuàng)新型國家與政府行為》、《金融市場的制度與結(jié)構(gòu)》、《微觀經(jīng)濟(jì)學(xué)：行為、制度和演化》(譯著)等。