Research On Regional Market Integration And Industrial Structure Upgrading In The Yangtze River Economic Belt

Under the current overall situation of profound and complex changes in China's domestic and international environment,Based on the premise of taking advantage of the manufacturing power,based on improving domestic production capacity and social consumption level,taking the improvement of technological independent innovation level as the core,taking the industrial structure upgrade as the main line,accelerating the improvement of the international and domestic dual cycle is a strategic measure to achieve high-quality and sustainable development of China's national economy.Breaking the regional market segmentation and trade barriers,and promoting the formation of a unified national or regional market is not only a key factor in effectively exerting the role of the market in allocating resources and optimizing the spatial allocation of resources,but also an important support for the Chinese economy to expand the international and domestic markets and promote the upgrading of the industrial structure in the face of the new global economic and trade situation.In-depth analysis of the impact of regional market integration on the upgrading of industrial structure and the mechanism of action,Objectively assessing the regional development differences that regional market integration promotes the optimization of industrial structure,and scientifically establishing the basic path for regional market integration to promote the optimization and upgrading of industrial structure is a major research topic facing the coordinated development of China's national economic space in the high-quality development stage.The construction of the Yangtze River Economic Belt is not only a major strategic plan for the spatial development of China's national economy in the new era,but also a major strategic move for China to comprehensively promote reform and development,build a new pattern of all-round opening and deeply integrate into the world economic system under new historical conditions.In 2019,the permanent population and total GDP of the Yangtze River Economic Belt accounted for 43%and 46.2% of China's total,respectively.The integrated development of the Yangtze River Economic Belt has achieved remarkable results,and the characteristics of "integration" continue to highlight in the Yangtze River Delta,the urban agglomeration in the middle reaches of the Yangtze River,and the ChengduChongqing double-city economic circle.However,due to the influence of many factors such as development foundation,management system,industrial structure,market system,etc.,the prevalence of local protectionism,unbalanced market development,severe market segmentation and blockade,and distortion of the industrial structure are becoming more and more obvious,which have become severe constraints on the upgrading of the industrial structure and the development of economic integration in the Yangtze River Economic Belt.On November 29,2018,the “Opinions of the Central Committee of the Communist Party of China and the State Council on Establishing a More Effective New Mechanism for Regional Coordinated Development” proposed to promote the construction of the regional market in the Yangtze River Economic Belt,establish a new mechanism for regional market integration development,and promote the formation of a unified national market.In view of this,this paper takes as the research object the Yangtze River Economic Belt,which spans the eastern,central and western regions,and is of strategic significance to China's economic development.Based on the strategic background of smoothing the domestic circulation,establishing a unified regional market and promoting the upgrading of industrial structure,based on the key problems existing in the process of market integration and industrial structure upgrading in the Yangtze River Economic Belt,supported by the relevant theories of market integration and industrial structure upgrading,taking the internal mechanism of the influence of market integration on the upgrading of industrial structure as the logical main line,focusing on the empirical analysis of the impact of commodity market integration and factor market integration on the upgrading of industrial structure,Aiming at putting forward the strategic countermeasures to promote the regional market integration of the Yangtze River Economic Belt to promote the upgrading of industrial structure,this paper comprehensively analyzes,studies and explains the regional market integration of the Yangtze River Economic Belt and the upgrading of industrial structure.The specific writing structure is divided into eight chapters:The first chapter summarizes the background and significance of this topic,combs the research ideas and framework of this paper,and summarizes the key points,difficulties,key innovation points and shortcomings of this paper.The second chapter elaborates the important theories of domestic and foreign market integration and industrial structure upgrading.Based on the literature review of market integration,industrial structure upgrading,and the relationship between market integration and industrial structure upgrading,the concept and connotation of market integration and industrial structure upgrading are defined.Based on analyzing the institutional logic of market non-integration,the third chapter summarizes the influence mechanism of regional market integration on the upgrading of industrial structure through the construction of theoretical models and literature summaries,and analyzes the effect mechanism of commodity market integration and factor market integration on the upgrading of industrial structure respectively.The fourth chapter quantitatively describes and analyzes the development status of commodity market integration,factor market integration and industrial structure upgrading in the Yangtze River Economic Belt based on the establishment of an indicator system,and analyzes the key problems in the process of the integration of market and the upgrading of industrial structure in the Yangtze River Economic Belt.Chapter 5 uses the Spatial Dubin Model to empirically test the impact of commodity market integration in the Yangtze River Economic Belt on the upgrading of industrial structure based on the city level panel data.The results show that commodity market integration has a U-shape that first declines and then rises to the upgrading of industrial structure.Then the paper examines the three mechanisms that the commodity market integration affects the upgrading of industrial structure: technological innovation,economies of scale and spatial spillover separately.The sixth chapter uses the spatial Dubin model to test the effect of the integration of labor and capital factor markets on the upgrading of industrial structure in the Yangtze River Economic Belt.It is concluded that the integration of labor and capital factors market has a U-shaped influence on the upgrading of industrial structure,which first decreases and then increases.On this basis,the paper examines the factors flow,technological innovation and spatial spillover mechanism that the integration of labor and capital factor markets affects the upgrading of industrial structure.The seventh chapter puts forward the system arrangement,mechanism design and strategic focus of promoting the market integration and upgrading the industrial structure of the Yangtze River Economic Belt.The eighth chapter summarizes the main research conclusions of this paper,and puts forward the prospects of the research on regional market integration and industrial structure upgrading of the Yangtze River Economic Belt.This paper mainly draws the following research conclusions:Firstly,market non-integration was born in the process of China's gradual reform and economic transformation,and institutional factors such as administrative decentralization,performance appraisal incentive,ownership nature and administrative divisions are the main reasons for regional market non-integration.The influence direction of regional market integration on industrial structure upgrading is determined by the trade-off between “diffusion effect” and “backflow effect” caused by external space factors.When the level of regional market integration in the Yangtze River Economic Belt is low,under the influence of the backflow effect,the element resources in the middle and upper reaches of the Yangtze River flow to the economically developed lower reaches of the Yangtze River,which weakens the foundation for industrial development and the expansion of market scale,which is not conducive to promoting the upgrading of industrial structure.When the level of regional market integration is high,the diffusion effect in the lower reaches of the Yangtze River is greater than the backflow effect,and the industrial development in the middle and lower reaches of the Yangtze River benefits from the radiation and diffusion effect brought by the market integration,which is conducive to promoting the upgrading of industrial structure.Secondly,the integration evolution trend of different types of markets in the Yangtze River Economic Belt shows significant differences.In general,during the inspection period,the level of commodity market integration in the Yangtze River Economic Belt was the highest,followed by capital market integration,and labor market integration was the lowest.In terms of time,during the inspection period,the level of commodity market integration and capital market integration showed a fluctuating upward trend,while labor market integration showed a fluctuating downward trend,indicating that the current level of commodity market integration in the Yangtze River Economic Belt is relatively high.The segmentation of the factor market,especially the labor market,is still obvious and in an expanding trend.Thirdly,the integration of regional commodities and the integration of regional factor markets in the Yangtze River Economic Belt have had a U-shaped impact on the upgrading of the industrial structure,which first restrains and then promotes.The lower level of commodity and factor market integration is not conducive to the upgrading of the local industrial structure.A higher level of commodity and factor market integration is conducive to promoting the upgrading of the local industrial structure.The integration of regional commodity and factor markets also exerts a spatial spillover effect to produce a U-shaped impact on the upgrading of the industrial structure in neighboring areas,which reduces first and then promotes.However,there is a significant difference in the stage of the sample observation values of regional commodity market integration and factor market integration during the inspection period.About 50% of the sample cities are in the stage where commodity market integration promotes the upgrading of local and neighboring industrial structures.Most of the sample cities are at a stage where the integration of labor and capital markets hinders the upgrading of local and neighboring industrial structures.This difference is closely related to the unbalanced development of commodity markets and factor markets and the relatively lagging development of factor markets in the Yangtze River Economic Belt.Fourthly,there are differences in the mechanism of the influence of regional commodity market integration and factor market integration on the upgrading of industrial structure in the Yangtze River Economic Belt.The integration of commodity markets affects the upgrading of local and neighboring industrial structures through technological innovation,economies of scale,and spatial spillovers.The integration of factor markets affects the upgrading of industrial structures through the spatial flow of factors,technological innovation and spatial spillovers.The commodity market integration forms the external pull that drives the upgrading of industrial structure from the demand side mainly by expanding the market scale and expanding the market demand.Factor market integration is mainly through accelerating the spatial flow of factors and improving the level of technological innovation to achieve the improvement of allocation efficiency.From the supply side,it forms the endogenous driving force for industrial structure upgrading.Fifthly,to comprehensively promote the integration of the regional market in the Yangtze River Economic Belt to promote the upgrading of the industrial structure,it is necessary to establish a “three-in-one” strategic strategy of institutional arrangements,mechanism design and strategic priorities.The institutional arrangements should be established from four aspects: unifying market access system,deepening reform of performance appraisal system,deepening reform of fiscal and taxation system,and promoting market-oriented reform of factors of production.The mechanism design is determined from four aspects:perfecting the regional cooperation mechanism,innovating the management and coordination mechanism,perfecting the regional interest sharing mechanism and establishing the unified policy coordination mechanism.The strategic focus will be established from four aspects: strengthening strategic coordination and planning guidance,creating a flow platform for factors,improving the regional market system,and promoting industrial division of labor and cooperation.The main innovations of the paper are:The first is the innovation of research perspective.Existing research mainly examines the influencing factors of industrial structure upgrading from the aspects of demand-driven,supply-driven,institutional factors,and opening to the outside world.However,there are few studies and analysis on the effects and mechanism of industrial structure upgrading from the perspective of market segmentation or market integration.Based on the practical problems of market segmentation and regional barriers in the Yangtze River Economic Belt,this paper takes regional market integration as the starting point for research,and objectively analyzes the status quo and problems of regional commodity,factor market integration,and industrial structure upgrading in the Yangtze River Economic Belt.In the above,this paper innovatively constructs a three-dimensional analysis framework of“commodity-factor-industry” in which regional market integration affects industrial structure upgrading,and then study the effects of commodity market integration and factor market integration on industrial structure upgrading from both theoretical and empirical aspects,thus put forward the strategic countermeasures to promote the integration of the regional market of the Yangtze River Economic Belt to promote the upgrading of industrial structure.The second is the innovation of research methods.On the one hand,this paper expands the Free Entrepreneurial Model of New Economic Geography,expressing the level of regional market segmentation in terms of generalized transportation costs considering natural and technological factors and institutional barriers,expressing the level of regional market integration in terms of inter-regional trade liberalization,taking the rate of return on human capital as an endogenous variable to measure the upgrading of industrial structure,establishes a theoretical analysis framework for the impact of regional market integration on the upgrading of local industrial structure,and deduce that regional market integration can have a U-shaped impact on the upgrading of local industrial structure.On the other hand,this paper uses spatial econometric model estimation methods to examine and identify the influence relationship and transmission mechanism of regional commodity market integration and factor market integration in the Yangtze River Economic Belt on the upgrading of industrial structure.This paper relies on the direct effect and indirect effect decomposition advantages of the spatial Dubin Model to identify the spatial spillover effects that regional commodity and factor market integration affect the upgrading of industrial structure,thus confirming that regional market integration can have a U-shaped impact on the upgrading of industrial structures in neighboring regions,which lays the foundation for the study of spatial issues of regional market integration.The third is the innovation of research viewpoints.This paper believes that in the early stage of market integration,breaking the division may weaken the foundation of industrial development in some regions and is not conducive to the upgrading of industrial structure.However,a higher level of regional market integration can promote the rapid flow of commodities and factors beyond the limits of administrative divisions in a wider space,and rely on the transfer of industries to realize the effective replacement of factors and the rational adjustment of the industrial spatial layout between the local and other regions,and eventually form an external pull and an endogenous power to drive the upgrading of the industrial structure from the demand side and the supply side through the expansion of market demand scale and the improvement of factor allocation efficiency.The non-linear impact of regional market integration on the upgrading of the industrial structure of neighboring regions reflects the co-opetition relationship of regional industrial development.With the improvement of regional market integration from a low level to a high level,the interaction between different regions has shifted from the zero-sum competition of “beggar-thy-neighbor” to the cooperation and win-win of “hand in hand”,and the spatial flow of factors has changed from one-way agglomeration to multi-directional agglomeration and diffusion,the development of industrial space shifts from homogeneous competition to division of labor cooperation.Market integration drives commodity flow,factor flow and industrial transfer,forming a combined force of economies of scale,technological innovation and improvement of factor allocation efficiency,which ultimately drives the upgrading of the industrial structure.