ABSTRACT

“Region” is a multi-faceted, multi-layered and highly relative concept and can be interpreted from various perspectives. “Regional government” refers to an organization which manages an administrative region of a nation. It is often used in relation to “national government” or, in a federal state, “federal government”. The “super-economic coercive” power and the “economic coercive” power of regional government are contingent upon the game between the region and the nation and the region’s social and economic strength of development. A mature market economy should be a combined economic system of “strong market” and “strong government”. Consumers and enterprises, in the role of micro-economic entities, are mainly concerned with prices. Regional government tends to be proactive and responsive. When economic turmoil arises, regional government can “cushion” their impact level by level and thus mitigate the effects to the least extent. Competition between enterprises takes place in their fight over industrial resources, while regional government competition targets urban resources.