Study On The Border Effect And The Regional Economic Integration Of Yangtze River Delta

With the steady improvement in the level of the Chinese economy, regional economic integration became the important mode of Chinese economic growth. The economy of Yangtze River Delta was growing fastest in Chinese regions.It was called as "the engine of economic growth in China and the world "and"one of six large urban agglomeration in the world. " However, in the economic integration of Yangtze River Delta, the regional economy was still faced with various factors.Firstly the paper generally discussed the border effect theory and regional economic integration theory,in order to explain inner relation and mechanism of the border effect, the integration of regional economy and the Yangtze River Delta:the boundary impact on the Yangtze River Delta with shielding and intermediary effect, and the changing from the shielding effect into intermediary effect would promote the regional economic integration.On the basis of theoretical analysis, the paper studied not only the present situation of the economic integration of Yangtze river delta,but also the weakness in the development. The paper also studied the integration in different fields of transportation and administrative barriers, the development of local government and enterprise and the industrial structure.After studying the theories and practical issues,the paper verified the degree of development of the Yangtze River Delta economic integration with the convergence model of economic growth.And then,it also vertified the border effect of integration with the regional market segmentation model. Through two models,the paper found the significantly development of economic integration in Yangtze River, and the momentum for integration:" slowly, fast, steadily".The local market competition and shielding effect increased fastly in the Yangtze River Delta.Because of that, the pace of economic integration slowed down. In addition, the border effect affected on regional economic integration with the nationalization of the economy, the degree of openness of the regional economy and local government intervention. The overall planning from the Central Government was beginning to bear results.According to the current situation of Yangtze River Delta economic integration,the paper presented recommendations and suggestions.Motivate regional cooperation and realize multi-win-win situation of different economic subjects. Deepen the reform of state-owned enterprises and eliminate local protectionism.Plan the whole industry and provide perfect based environment for industrial structure adjustment. Through these ways, promote the integration of the Yangtze river delta.