Abstract：In mainland China, a district's economic development has negative relationship with its governmental scale. In view of the comparative study, the higher the proportion of administrative staffs in total labour force and administrative expenditure in GDP in a district is, the more underdeveloped this district's economy is. Whereas then versa is. According to the historical data from the year 1978 on, the proportion of administrative staffs in total labour force and administrative expenditure in GDP donot have the tendancy to reduce, it is not an inherent law of economic development but a result of sluggish reform in administrative organizations. The "big government" wastes much resource and has a large motive and opportunity to "establish rent" and "seek rent", which puts more weight on the microeconomic agents and dampen their enthusiam of creating profit and wealth. An important factor for economic development in a district, therefore, is to transform a "big government" into "small government".
