Study on Transformation of Development Zones in China in Public Governance: General Analysis in the Perspective of Schema

Transformation of development zones in China in public governance performance determines the strategic upgrade of China's open economy. This paper assumes that the system of public governance has efficient allocation of public resources desirability. Namely, there is an interaction of rental incentive and space polarization effect among public administration, industrial upgrading, land-intensive and environmental protection, constructing "three in one" mathematical equilibrium models. Mathematical analysis reveals that government tax and corporate profit have integration, continuity and reciprocity of institutional incentives. Shanghai FTA experience has shown that the interaction between rent incentive and spatial polarization effect, is based on an open economic system with continuous innovation, and is kept in line with the liberalization of international trade rules. The policy implication is that the transition of development zones in China should move in direction of free trade areas to achieve its institutional evolution.