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Abstract Since the reform and opening up policy in 1970s， China has been keeping development as its central task. With the strategy of ″Efficiency Priority，″ local governments have shown great achievements in governing capability as well as economic development. At the same time， an increasingly prominent problem is the imbalance between rapid economic growth and serious political corruption. As two sides of a coin， high integrity risk and systematic corruption indicate institutional incentives. This article aims to reveal the basis in economic fundamentals and governance between high governing capability and high integrity risk in the local governments so as to provide references for the interpretation of the ″corruption-development paradox″ and the governance of a clean government． Local governments' economic growth models were formed under the central-local relations which were relatively centralized in politics and decentralized in economy. Local governments' competition， which is based on the Promotion Tournament Model， has made government investment an important way to achieve economic growth. Public ownership provides local governments with channels of utilizing land business to obtain investment funding， and land business leads local governments to turn into ″Integrated Governance.″ In the ″integrated governance″ mode， the connection of the political mechanism and administrative mechanism with the operation mechanism of company achieves efficiency， and changes local governments' governance thinking， ruling methods and power structures. In the process of seeking economic growth， economic thinking goes to the forefront. So local governments' operation mechanism is the basis of the ″corruption-development paradox.″ The operation mechanism of government has a profound impact on the corruption control mechanism. The efficiency priority thinking takes precedence over controlling corruption thought. The concentration of power structure leads to the power restricting failure， punishment-based governance results in the lack of prevention， and these lead to the high integrity risk of the local governments． In the new period of development， economic development is inseparable from the pursuit of efficiency， and the prevention of high integrity risk is also of great urgency. Attention to both economic development and clean government construction is the right attitude at this stage. Anti-corruption policies in this situation need systematic governance thinking，scientific governance structure and rational governance path. Classification management in production and distribution areas， power controlling with restriction and supervision combined， are worthy of further studies.
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