| Regionalization and globalization are two world-wide accepted development trends at present. Due to the rapid development and progress of communications and transportation technology and the conception of market economy development, market, production and the flow of information has gone beyond the time and space, across national boundaries, and have shown a strong development trend in the breadth, depth, speed, relationship, impact, etc. The development of regional integration has accelerated noticeably. Cross-border regional integration such as the European Union, NAFTA, APEC, etc. has realized in economic and wider field. The phenomenon of organization and systematization of the worldwide economy, politics and society represented by multinational corporations, united government organizations, etc. have become an important driving force for globalization development. At the same time, globalization is reshaping the contemporary society and world order. As a country or region, the development of regional integration across the administrative regions is promoted by reform and institution innovation. For instance, in Japan the power separation of central and local governments, the adjustment of the grass-root administrative regions and promotion of cross-border joint government system are the inevitable choices for economic and social development during the process of globalization and regionalization.Along with the increasingly deepening of the Reform and Open policy and the gradual establishment of the market economy in China, the network of economical activities has surmounted the limits of administrative division. With the transition of government functions, economic function of administration region government is wearing off. At the same time, the economic communication between Chinese administrative regions becomes closer day by day. Although administrative region economy and local protectionism once played a certain role in promoting the economic development of administrative region during the transitional period, its limitations is getting more and more evident. Vicious competition between administrative regions by restricting free transaction of production factors and products seriously hinder well-balanced process of regional economic development.Economic globalization is an irreversible trend of the current world. Economic development of a region or a country is no longer independent. By network various relations between different regions or countries have been established. Under the laws of the socialist market economy, economic linkage between administrative regions is taking shape gradually. Competition and Cooperation are the highest level of competition, particularly in regional economic development. The competition is normal. But if there is only competition without cooperation, the competitiveness of a country or region will drop due to internal friction.Competition and Cooperation brings new challenges to Chinese traditional system. Regional integration is promoted on the historic stage. Diversity and commonness of regions decide that only through regional integration mutual development can be achieved. As the frontier of reform and opening of China, the Pearl River Delta firstly proposed "Pan-Pearl River Delta" as the vanguard of Chinese regional integration in 2003. After the Pearl River Delta and the Great Pearl River Delta, the "Pan-Pearl River Delta" has brought the power for regional development. The comprehensive competitiveness of the "Pan-Pearl River Delta" has been greatly enhanced by industry complementing, resource sharing, market building and policy docking.This dissertation was based on the aforementioned background. From the restructuring of the system and the urgent need of reform at present, this paper learnt from successful experience of the international and overseas regional integration. Taking status, characteristics and problems of the Pearl River Delta and Yangtze River Delta regional integration as starting point, this paper discussed the main problems and system bottlenecks of Chinese regional integration from the regional integration mechanisms, regional organizations and transformation of government functions. Economic transition and reform is not only the engine for the development of regional integration, but also brings block to the development of regional integration. The paper analyzed the problems of the market functions, the government functions and regional organizations during the development of Chinese regional integration. It strived to resolve these issues by system construction and innovation, transformation of government functions, improving the market functions and organizing effective regional organizations.The dissertation was composed of nine chapters.The first chapter was the introduction which presented the related research background. China has marched into the important strategic opportunity time. It was necessary and urgent to analyze the problems during regional integration faced by Pearl River Delta, Yangtze River Delta and Tianjin Binhai New Area and discuss the new ideas of economic system and the reform of administrative system. From the perspective of system innovation, development zone system is one kind system innovation during the initial transition to market economy system. It analyzed the function and contribution of development zones on the development of the economy and society. As an outcome of Reform and Open Policy, development zone is an important motive force to the economy development and institutions change. Along with its own mature and external environment changes, the function of development zone on the state economy trends to be steady gradually. The new development stage called for establishment unified market and effective regional organization to satisfy the current economy and society requirement.In chapter 2, the connotation of regional integration was analyzed. Regional integration must include economic integration and systematic integration. From market, product, service, space, industrial layout, infrastructure, resources and environment, the basic theories of regional economy development were summarized.In chapter 3, research review and comment on regional integration were presented mainly from the concept, the driving mechanism, the pattern, the organization, the relation between regional integration and administrative region economy, the relation between regional integration and institution innovation, transformation of government functions, and so on. The related basic theories were also sorted out and summarized.In chapter 4, the modes and examples of regional integration were introduced from two levels. The first level is international regional integration including European Union, the North American Free Trade Organization and Asia-Pacific Economic Cooperation (APEC). Their formation characteristics and operational mechanism were analyzed respectively. The second level is domestic regional integration. Japan, France and the US were taken as examples. Reform and institution innovation which impel regional integration of these countries were presented. A lot of experiences and implications for Chinese regional integration were gotten.In chapter 5, the Pearl River Delta and the Yangtze River Delta were taken as Chinese medium-scale regional integration typical representative. Based on analysis of its characteristics and operational mechanisms, the main problems during development were discussed.During transitional period, restricted by economic system, political system and social system, the process of Chinese regional integration is slow.In chapter 6, the problems caused by reform and institution innovation during transitional period were discussed from government, market and organization. Firstly, the representation, internal dynamical mechanism and reasons of government "offside" and government "absent" were analyzed. Secondly, own inherent function faults of market and function faults caused by imperfect market system or immoderate interventions from the government were pointed out. We must make the government and the market harmonic and enhance self-discipline of the market and effectiveness of the government by adjusting and transforming of government functions. Thirdly, external environment question and own problems of Chinese regional integration were discussed. What caused these problems was also analyzed.Chapter 7 studied institution innovation to realize Chinese regional integration. From transformation of government functions and improvement of market system, building effective government under the rule of law was put forward. In order to comply with the development needs of the socialism market economy, by establishing and perfecting modern property system and modern enterprise system, relevant laws of reform of institution innovation will be perfected to form new market system and order.Chapter 8 discussed the organization of regional integration. Discussed the necessity to construction of Chinese regional integration organization and institutional determinants which affect organization construction. Establishment of multi-layer, multivariate and multi-kind regional integration organization by deepening reform, improving market economic system and amplifying the legal institution was rational choice to promote the development process of regional integration and realize sustainable development of China.Chapter 9 took Tianjin Binhai New Area as Chinese micro-scale regional integration typical representative. From reform and institution innovation perspective, this paper reviewed the development process of Tianjin Binhai New Area and analyzed the system and spatial organization problems during the development process. Suggests which included constructing effective regional integration organization and building relevant dynamic mechanism between administrative regions and functional districts were put forward to promote the development process of regional integration and realize sustainable development.Finally, suggestions for promoting regional integration and intergovernmental cooperation & competition were put forward. These suggestions included improving legal system, building limited and effective government, establishing and perfecting modern property system and modern enterprise system, separating enterprises from government, eliminating the administrative region economy and so on.
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