Study On The Economic Growth Effect Of Market Integration In Yangtze River Economic Belt

Since the reform and opening up,China has created a world-renowned miracle of economic growth,and becomes the world's second largest economy entity.In the process of economic growh,the improvement of the level of opening up to the outside world and domestic market integration provide a favorable external environment for the regional division of labor and the scale effect,which become the twin engine of economic growth.With China's entry into the New Normal of"steady growth,structure adjusting and development transformation",the economic downward pressure further increases and China is facing increasingly complex foreign trade environment,especially in the current grim "anti-globalization".Therefore,the further deepening of the market economy reform and establishing an open market system,are of great significant to promoting market integration,fully promoting the scale effect,and stable economic growth.In this context,the "Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Comprehensively Deepening the Reform" was adopted at the Third Plenary Session of the 18th Central Committee of the Communist Party of China in 2013,and put forward the idea of "Building an unified,open and competitive market system is the foundation to achieve the decesive role of market in resources allocation.For China,to further promote the market integration of Yangtze River economic zone under the national strategy of "Yangtze River Economic Zone" is beneficial to stimulating economic growth and achieving regional balanced development.This study tries to answer the following questions by the logic of "market integration measure(Chapter ?)——the growth mechanism of market integration(Chapter ?)——empirical study on the the growth mechanism of market integration(Chapter V&Chapter ?——market integration suggestion(Chapter ?)".Firstly,what are the temporal trends and spatial differences for the market integration after considering the commodity and factor level in the Yangtze River economic zone?Secondly,from the view of growth source,does market integration improve the overall factor productivity level under the effect of agglomeration and crowding-up?And what is the difference between different urban agglomerations for the TFP?Thirdly,if the "spacet" factor is included in the analytical framework,does the local market integration have a spatial spillover effect that affects other regions' economic growth?And whether market integration has a direct impact on the spillover effects of economic growth?Considering the spatial heterogeneity of the cities,how does market integration's elasticity to influence economic growth differ?Finally,what institutional abstacles is the Yangtze River economic zone faced?In conclusion,the above solution of the problems are of great significance to the unity of "efficiency" and "balance" of economic growth under the condition of market integration.Specifically,the core contents of this study are divided into the following four parts:Firstly,the study makes a quantitative analysis of the market level in the perspective of commodity,producing factors and the comprehensive Yangtze River Economic Belt level.(1)For the commodity market level,the integration level has been improved in the long-term trend at different region level.While,the eastern level is the highest and the eastern one is the lowest.(2)For the labor market level,the integration level has been also improved to certain in the long-term trend at different region level,but show a decreasing trend after the financial crisis in 2008.In the horizontal comparison perspective,the labor market integration show a spatial situation of "east low and west high",and also the increasing speed of the western level is faster than that in the eastern one.(3)For the capital market level,the integration level has been improved in the long-term trend at different region levels,but the finanfical crisis has exacerbated the capital market segmentation to certain extent.And the capital market integration level in the east is higher than that in the west.(4)For the comprehensive market integration level in the Yangtze River Economic Belt,the market integration show a rising trend in the volatility process,but shows a decresing tren in 2003 and 2009.For the regions level,the comprehensive market integration level has been improved in different regions.With the financial crisis as the time node in 2008,the integration has experienced a spatial pattern change from the "East Low West High" to the "East High West Low",which means that the marketintegration in each region is located in the process of dynamic change.Secondly,theoretically,this study tries to reveal two paths of market integration in influencing economic growth.(1)For the endogenous economic growth path,the market integration could improve the total factor productivity and achive the engogenous economic growth.One one hand,the market integration may promote the total factor productivity through the following mechanisms like "factor matching effect","regional cooperation effect" and "competition effect".On the other hand,the crowed effect from the market integration may reduce the total factor productivity.This part shows the logic of "cake making";(2)for the new economic geography path,the core of New Economic Geography(NEG)is the market potential,which is benefical to the spillover effect of economic growth.For market integration indicator,it is endogenous in the indicator of market potential and will play a key role to promote the local and neighbor's economic growth.this part shows the logic of "cake distribution".The empirical analysis can be divided into two parts.(1)For the frist part,this study explores the influence of market integration on total factor productivity.Results show that,the influencing coefficient of market integration on TFP is 0.233;and in such urban agglomeration as Yangtze River Delta,the Yangtze River Middle Reaches Urban Agglomeration,Chengdu-chognqing urban agglomeration and other two west regional urban agglomeration,only the efficient of market integration in Yangtze River Delta is significant.(2)For the second part,this study uses spatial econometrics method to explore the economic growth spillover effect of market integration.Results show that,firstly,there may exist a nonlinear relationship between market integration and local economic growth.Before the financial crisis,the efficient of market integration is negative,while in the period from 2009 to 2014 and the period from 2000 to 2014,the efficient turns out to be positive;secondly,the market integration has a significant influence on the economic growth in other places.The influencing coefficient is positive and negative respectively before and after finiacial crisis.And also,in the long-term period from 2000 to 2014,the efficient of market integration is 0.00286,indicating that the market integration could improve the per capita GDP level in other places for the long term,which is beneficial to the regional balanced growth.Thirdly,market integration has a positive effect on the economic growth spillover effect.The study establishs an interaction indicator,this interaction variable is synthesized by the following three indicators like market integration,spatial weight matrix and the indicator of per cpita GDP that reflects the economic growth spillover effect of market integration,results show that the coefficient of the interaction indicator is positive.Furthermore,this study also decomposes the direct effect,indirect effect and the total effect of market integration respectively.Fourthly,market integration is benefical to the accomplishment of regional balanced development.Specifically,the elasticity of market integration in the middle area is larger than that in the eastern area,indicating that the promoting effect of market integration on per capita GDP is larger in the middle area and the market integration could promote the regional convergence and balanced development.Finally,the paper puts forward the problems that may obstructes market integration process of the Yangtze River Economic Belt,and puts forward a set of institutional arrangements to promote the market integration.Furthermore,the main conclusions of this study are summarized,and the future research direction is forecasted.