A Pilot Exploration of the Institutional and Systemic Innovations in Inter-local-governmental Cooperation in China´s Coordinated Regional Development Course

In recent years China witnesses thriving regional economic development and intensified regional cooperation at broadening ranges, fields and sizes. However, at mean time the interest conflicts between districts also gravely impede coordinated regional economic development. Hence it has been a hot topic in local government economic management as how to break local protectionism and how to utilize organizational and institutional forces to channel rational trans-regional production factor flows, create overall regional advantages and boost regional economic development. Based on an analysis of the factors which prevent local governments from cooperation, this paper holds that institutional and systemic innovations on inter-local-governmental cooperation are the key to propel coordinated regional economic development.