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Based on the case of Taizhou City in Zhejiang Province,the present paper investigates the mechanism of the interaction between the local government and private enterprise in the process of regional economic development.We identify the“Taizhou Model” as a model of institutional innovation and the development of private economy,which is private sector- induced and local government-promoted,lndeed,the impact of such mechanisms has had a significant influence on the reforms and development of China’s economic system.
Based on the case of Taizhou City in Zhejiang Province, the present paper investigates the mechanism of the interaction between the local government and private enterprise in the process of regional economic development. We identify the “Taizhou Model” as a model of institutional innovation and the development of private economy, which is private sector- induced and local government-promoted, lndeed, the impact of such mechanisms has had a significant influence on the reforms and development of China’s economic system.