A Spatial Econometric Research On The Effecets Of Integration Of Regional Markets To Economic Growth

Integration of regional markets refers to free transfer of products, labor and productionfactors between different areas in one country, and as well as its non-discriminatory, it alsorefers to market-oriented integration in the region. Individual regional market integration is inthe process of integration of regional markets, it is a situation where each individual and othermembers of the regional market integration come together. This paper studies the impact ofthe individual regional market integration on local economic growth.Advocates say that integration of regional markets will bring benefits of division of awider range of effects, economies of scale, the effect of competition, technological innovationand other aspects of the integration of regional markets, and ultimately to promote regionaleconomic growth. But opponents argue that the relatively developed economies in the processof regional integration of markets can get more interest because they have technicaladvantages, the division of labor dominant in their favor the development of capital-intensiveand technology-intensive industries, on the other hand, not-so-developed areas could onlyhave development of labor-intensive industries in the regional division of labor, or through thelearning relatively developed areas of technology and experience, the gap between them willfatherly expand in the long term.Although there are an extensive analysis of existing research on the integration ofregional markets affect economic growth, some research get their main conclusion by seeingthe region as a whole average, ignoring the differences of regional market integration on theimpact of local economic growth. In order to verify whether the conclusions of previousstudies established and analysis of the process of economic growth of the internal membersfrom within the regional market integration, the paper2000-2009in the Yangtze River Deltaand the Pearl River Delta, for example, to take geographically weighted spatial lag panel datamodel analysis methods, analysis the two economic zone individual regional marketintegration affect the spatial correlation of spatial heterogeneity of economic growth andeconomic growth.The results show that the spatial heterogeneity of individual regional market integrationon economic growth, the article did not find the individual regional market integration is beneficial to the relatively developed areas, relatively backward areas unfavorable evidence,the reason is not for the local market segmentation reasons. Article conclusions include:(1) market integration of the Yangtze River Delta and Pearl River Delta integration ofmarkets maintain upward trend, the level of market integration in the Yangtze River Delta riseafter2003to catch up with (or exceed) the Pearl River Delta. Individual regional marketintegration between cities of the two economic areas have obvious regional characteristics, theseven cities of the Yangtze River Delta (north of Zhejiang) individual regional marketintegration level higher than that of eight cities in southern Jiangsu and Shanghai, the PearlRiver Delta, Guangzhou and Foshan individual regional markets the highest degree of thelowest degree of integration of the individual regional markets in Dongguan and Shenzhen.(2) In the Economic growth model, which only considers individual regional marketintegration, market integration in the Yangtze River Delta and the Pearl River Deltaintegration of local economic growth are statistically significant. Among them, the currentvalue of market integration in the Yangtze River Delta has a significant role in promotingregional economic growth, with one and two lags,market integration of the Yangtze RiverDelta statistically significant impediment to economic growth in the region; Pearl River Deltamarket one of current and hysteresis of a statistically significant role in promoting regionaleconomic growth.(3) In taking into account economic growth in space related and individual regionalmarket integration of spatial heterogeneity model, the two economic cities in the region aresubject to positive spatial spillover effects of the surrounding urban economic growth,openness the Yangtze River Delta, with Shanghai Distance space closer to the city from agreater correlation coefficient (Huzhou, Shaoxing, Jiaxing), Shanghai spillover effects on theeconomic growth of the surrounding cities; higher degree of opening up to the outside worldin the Pearl River Delta, space near the city of the Hong Kong and Macao greaterautocorrelation coefficients (such as Shenzhen, Zhuhai and Zhongshan, etc.), the regiongeographically close to the external market is easier to obtain a positive spillover effects ofthe economic growth in the surrounding areas.(4) After taking into account the spatial heterogeneity of economic growth spaceautocorrelation and individual regional market integration, economic growth space from the presence of reducing the coefficient of the individual regional market integration on economicgrowth. Among them, the impact of market integration in the Yangtze River Delta economicgrowth is no longer statistically significant; market integration in the Pearl River Deltaeconomic growth is still significant, but moderate level of economic development, theeconomic growth of the city space connected with the relatively developed areas affectedmaximum.According to the article, the innovation of this paper includes following two aspects:(1) Traditional research focuses on the overall regional market integration, part of thestudy relates to the individual regional market integration measure, but in the study ofregional market integration on economic growth is no literature to consider individualdifferences. Make up for the deficiencies of traditional literature in the direction of the studyfocuses on the two economic cities in the individual regional market integration, and itsimpact on economic growth.(2) For research purposes, this article,at the same time, put forward dealing with spatialheterogeneity and spatial correlation geographically weighted spatial lag panel data model,model estimation, and tests of mathematical deduction, besides, programmed by software toensure that the model is applied the feasibility of rich econometric toolbox.