The Influence Of Market Integration On The Development Of China Provincial Industrial Economy

Regional industry economy growth is decided by the rational disposition and division of production factor such as nature, human resource, capital, technology, information etc. to search a growth point which suits to the regional development on the one side, and on the other side, it decided by the demand of market to the regional industrial output, included the demand of inner-provincial market, the demand of inter-provincial market, as well as the demand of international market. Resource gift theory which is as the theory basis to guide the people to search the economy growth will lead to the poorer of the poor country and the richer of the rich country. Likewise, the theory cited to the problem of regional industrial economy growth will be bound to further enlarge the regions'disparity. After the appearance of the market integration theory, the flow of labor and other resource factor play a weaken role for the regional industrial economy disparity caused by the reason of resource gift. Since the China's planned economy transformed into market economy, the region protection doctrine has generally been weakened, especially after the entrance to WTO, with the ascendant of the domestic and international integration, the development of regional economy has freed the trammels from the domestic and international trade barrier, makes the enterprises face the bigger market and the stronger competition.The so-called regional industrial economy integration means the process of the industrial economy subjects in the light of homogenous and convergence of the economy establish the united production market and productive factor market among the regions for the profit acquisition of production, consume, trade and so on in the different spaces. The modern economic growth theory, the transaction cost and information dissymmetry theory as well as economic effect theory have provided a theoretic basis for the market integration. These economic theories think the establishment of market integration is benefit for establishing the united market which suit for large scale product development, attracting inner-region investment, promoting economic growth; benefit for saving transaction cost; benefit for gaining the largest assembly economic effect. At the meanwhile, the market integration is also benefit for enlarging market scale, enlarging enterprise scale, developing comparative advantage of the different regions, eliminating regional protection doctrine as well as it is benefit for the adjustment of the regions industry structure and its rational division. In this paper, we just base on the market integration theory, study the influence of the process of market integration to regional industrial economy development.