Study On Economic Development Of Eastern Inner Mongolia Under The Perspective Of Regional Intergration

Regional integration has always been one of the key subjects of regional economy research. In recent years, with the continuous further progress of global economy integration and regional economy integration, the research on regional integration has become deeper and deeper, a great many of theoretical and empirical research results had been achieved by scholars inside and outside of China. However, the current theory and practice on regional integration research mostly emphasize the impact which regional integration has brought to economy growth. Most of the existing solutions are mainly about how the government should play its leading role in regards of regional investment, regional trade, industry structure and consumer market development which are mostly focusing on economy integration. Research works on the impacts which regional integration have brought to the sustainable development capacity and efficiency improvement of regional economy is rare. Nowadays, global economy environment is depressing, the Chinese economy has also developed into the New Normal status which demonstrated by the diminishing scale benefit of investment, unsustainable high speed growth of import and export and recession of consumer market. The above factors has lead China to a series of serious problems including excessive production capacity, deterioration of ecological environment, enlarged income disparity between people in different regions as well as people in urban and rural areas. The old pattern which to advance the growth of economy with investment, import and consumer is no longer sustainable. If the above problems could not be solved, we will probably be trapped in “middle-income trap”. It is inevitable for China to carry out supply side structural reforms for our economy development.With reference to the theoretic research achievements of development economics and also distinguishing analysis on the concept of economic increase and economic development, the author of this dissertation holds the view that the economic increase should focus on the increase of aggregate economic volume and the economic development should focus on quality improvement of economic increase.The full-element growth rate explains that the fundamental driving force of economic development relies on technology advancement, innovation and improvement of human quality from the perspective of endogenous variable. It will play a significant guiding role in the reform practice of China,such as the supply side economic reinstructuring, industrial upgrading driven by technology and innovation rather than investment. This dissertation also analyzes the mechanism regarding how regional integration affect regional economic development from three dimensions which are market integration, administration integration and social integration. The author holds the view that market integration will do good to enlarge the scale of market and it will lead the resources to move towards regions with higher allocative efficiency through market competition mechanism so as to improve economic efficiency. Administration integration will be benefit for break of the administrative dismemberment within different administrative regions so as to accelerate the flow of element resources and therefore the improvement of economic efficiency.The social integration will help to lower the social unstable factors and cut cost of social dispute so as to improve the economic efficiency. In recent years, the development of the east part of Inner Mongolia is featured with marginalization for external integration, fragmentation for internal integration and isolation for connection between inside and outside. There is a negative correlation between Total Factor Productivity and economic increase which result in the major reason of regional unconformity the high administrative barriers inside of the region which has been affected by the remaining factors of central planned economy, which has affected and twisted the market conduction mechanism of element price.The issue of market segmentation is rather severe, in particular on the aspect of element market. The flow of natural resources, land resources and labor resources has been impeded more or less by the restriction factors such as regional geography and regional policy. The labor income disparity between different regions, urban and rural areas and different ownerships has been enlarged by human regulation which has result in the issue of social differentiation to a certain extent. The growth rate of full-element productivity is declining while the economic growth has been stimulated mostly by element investment. The advance of technology and improvement of technological efficiency did little contribution to economic growth.Through constructing the theory and measurement model on regional integration and regional full-element productivity, the case survey analysis on eastern region of Inner Mongolia has indicated that market integration is the fundament of regional integration. Through the decisive role that market has played on resource allocation, full-element productivity could be improved effectively. As for the existence of “externalities”, the strong impact of government on operation of macro and micro economy as well as many aspects of social life will still remain. Governmental intervention is not the only way to solve the problem of “market failure”. With the diversified trend of social value, complicated social contradictions and problems are soaring which requires the mechanism of social integration. None of the regions can be existing isolated. The regional integration must combine inside regional integration and outside opening integration which means inside integration with no outside integration will no longer work in the future. In addition, the author has provided relevant solutions and suggestions according to the features of inside and outside environment of eastern region of Inner Mongolia. These solutions and suggestions includes that for market integration, market price shall play the leading and guiding role for resource value development and resource allocation to realize industry transfer, advancing the progress of producing technology and assembling various resources to large and medium-sized cities. For dministrative integration, more efforts shall be spent on streamline administration and delegate power to lower levels so as to decrease the excessive intervention on microeconomy from government, enlarge the proportion of public financial expenditure and service in the fields of education and scientific research. For social integration, enhancing the equalization on public service, narrowing the developing gap between urban and rurual areas as well as ameliorating the mechanism for ecological compensation are the key measures shall be taken.At last, the conclusive summary for the whole dissertation as well as the inadequacies of this dissertation are elaborated by the author.