Abstract: There are many factors which exert vital influence on the development of region economy. The paper pointsout that the contradiction between supply and demand should be the real cause. Especially at present theprogress of globalization is speeding up, market demand has become one key factor in sustainable development ofregional economy. Enlarging market 's occupancy inside and outside of region is the main target of enterpriseswhich is the micro economic body in region-The scale of market exerts important role on regional economy.
The paper puts forward that resource, capital, labor, market (trade), institute, technology and knowledgeare the factors which take important roles in regional economy. And these factors are divided into two parts:hard constrain and soft constrain. It points out that hard constrain including resource, capital and labor could bedecreased by importing from outsides. Furthermore, it emphasizes social accumulating structure which takes culture and institute as core, and regards social accumulating struct ure as soft constrain.
On the basis of discussion about theory, the paper discusses about the stratagem of great development ofWestern China. T'he emphasises that enough attention should be paid to social accumulating structure of theWest, and believes that institution preparation and institution innovation has become the important prerequisitewhich guaranteces success of the stratagem of Great development of Western China. Meanwhile it points out thatthe best breakthrough for developing the West should be enforcing external trade and joining with rules of WTo.

Key words: regional economy, impulse, institute, Great development of Western China