A Study Of Yunnan's Participation In Greater Mekong Sub-region Economic Cooperation

The content of this paper includes two aspects: the first is the study of economic cooperation in Great Mekong Sub-region(GMS); the second is the study of Yunnan's participation in GMS economic cooperation.Firstly, based on related Regional Economics theories, this paper formulates the theory framework of international region economic cooperation. The study of the basis, the dynamic mechanism, the organization and the contents is the main task of regional economic cooperation. Hence is the formulation of theory frame of regional economic cooperation. Based on this theoretical direction, this paper analyzes the regional economic cooperation in GMS. The author divides the development history of the regional economic cooperation in GMS into three stages and analyzes the basis and the important role that trade and investment play in the regional economic cooperation in GMS. However, the author thinks that it is necessary for the Asia Development Bank to dominate the economic cooperation in GMS, because the overall infrastructure in this region lags behind. As loose cooperation between countries, the economic cooperation in GMS confronts flinty strategic and practical challenges.Confronting the existing difficulties in GMS, this paper puts forward the countermeasures of how Yunnan Province takes part in and promotes the economic cooperation. The article also put forwards that the point of Strategic Interest is the basic direction for the Yunnan Province to join the cooperation in this region, and is also the basis for other countries in GMS to participate and promote the economic cooperation successfully. Though the analysis of Yunnan's location advantage, the author thinks that the greatest advantage of Yunnan Province is international grand passageway advantage as a bi-directional bridgehead. Using this advantage, it is practical choice for Yunnan Province to turn its regional comparative advantage into regional competitive advantage. On one hand, it is the transform from regional comparative advantage to regional competitive advantage. On the other hand, it is the transform from low-cost primary competitive advantage to high-productivity regional competitive advantage. The viewpoints of this paper include that the trade efficiency is the key which affects the turn from regional comparative advantage to regional competitive advantage and that through the construction of infrastructure, the development of provincial trade and the implement of "go abroad" enterprise strategy for Yunnan Province to achieve the change from regional comparative advantage into regional competitive advantage. The article states that sustainable innovation is the key, which obtains through externality of industrial agglomeration to realize high-productivity competitive advantage. On one hand, we need formulate the special structure of industrial agglomeration. On the other hand, we can get the externality benefits of industrial agglomeration by industrial direction investment policy, attracting international and national investment and non-state-owned investment. The last, the paper points out that the government of Yunnan Province should offer effective institutional arrangement to realize the Two-Turn competitive advantage and play role in regional innovation as navigation lights.