The Role of Local Governments in Emerging Regional Business Systems: A Comparative Analysis of Zhejiang and Yunnan Provinces

Abstract

The Chinese economy has undergone a radical transformation since 1979 from a planned economy to a market economy. The economic reform has facilitated significant and rapid economic growth, while regional disparities are increasing. This research aims to study the changing roles of local governments in influencing the dynamic regional business systems in the transitional heterogeneous Chinese economy; therefore, for the purposes of this research, Zhejiang and Yunnan have been selected as two contrasting cases to research significant regional differences.