Study on the Efficiency of Chinese Local Officials in Economic Activities——discussion on the importance of official intrinsic incentive

Lack of efficiency in economic activities is a common phenomenon for China local authority officials.Lack of validity in external incentive to officials is a dominant factor.This can be contributed to the character of political trust agent relation in China.First,the financial restriction of incentive constrains the monetary compensation,and the operation of non-monetary incentive causes the political objective of agent economic activities,which results in the lack of incentive validity.Second,the difficulty in determining the objective of trustee and evaluating the performance of agent makes the officials easy to realize their political objective in the economic activities.If the objective and performance were easy to be determined,it would lead to a unilateral or simple appraisal simple,which would reduce the validity of the incentive.Therefore official's intrinsic incentive is extremely important.