Abstract:  Discussing main factors and its mechanism of optimizing the relationship between government and business is of great importance to construct a new type of relationship, to improve the quality of the relationship, and to promote the high-quality development of China in all respects. The internal logic and main promoting factors for the formation of the new type of the relationship between government and business are analyzed, and taking the provincial panel data of A-share listed companies from 2008 to 2017 as a sample, the fixed effect model is adopted to empirically investigate the mechanism and influence of policy change, inter-governmental competition and marketization on the change of the relationship between government and business. It is found that policy change, inter-governmental competition and marketization all have significantly positive effects on the improvement of the relationship between government and business. Further research reveals that policy factors and inter-governmental competition show obvious regional heterogeneity, that is, the effect has a trend of gradually weakening from east to west. Finally, based on the above conclusions, suggestions on how to promote the development of the relationship between government and business are put forward.

Key words:  the relationship between government and business, policy change, inter-governmental competition, marketization process, dynamic mechanism