THE MOTIVATIONS AND STRATEGIES OF LOCAL GOVERNMENTS TO PROMOTE THE NEWLY-EMERGING INDUSTRY UNDER THE DUAL INCENTIVE MODEL

This paper builds a Dual Incentive Model of industrial policy implementation in China to explore the patterns of local policy implementation under political and financial incentives.The authors select the new energy automobile industry as the case for study.According to the investigation of policy implementation at the local level,the authors find that the motivation of local governments to carry out central government's industrial policy mainly comes from developing local economy.Because the benefits of new industry cannot be realized in a short time and is largely dependent on local resource endowment,the level of local financial incentives vary by locality and is highly uncertain.Consequently,local government officials choose very different strategies in responding to the actions of the central government.Implications are drawn from the analysis with regard to formulating and implementing policies for emerging industries.