Domestic Market Distortion And Terms Of Regional Trade Aggravation

With our economy developing quickly, the economic gap between regions also become bigger. Balancing regional development has been in the 11th five-year-plan, it will become an important job of our regional development strategy.On premise of Great Nation Trade, the paper uses relevant international trade theory, tries to analyse the cause that the area economic growth gap pulls big from area trade arrangement angle. The paper thinks that the various domestic distortions gains less trade benefits to the less developed area, that leads to less accumulation of capita, then cause this areas falling to the poor accumulation circulation trap. Finally, we give some suggestions and countermeasures to forward how to improve reginal terms of trade.This paper has five parts. In the first part, with reality of Chinese regional trade and area gap, theory background and practical significance have been analysed. We think unreasonable area trade arrangement and distortions lead developed regions to gain more reginal trade benefits, but the area less developed regions enters poor accumulation. Part II studies current situation on terms of trade aggravation at home and abroad. International terms of trade aggravation totally has been matural. Reginal terms of trade aggravation theory has not comparatively perfect, and exagrated theory expounds being more rare. Part III has analysed the interacting mechanism between domestic distortions and reginal terms of trade aggravation. Domestic distortions can be devided into three: product market distortion, element market distortion and policy distortion, thinks that grave domestic distortion leads to unbanlance assignment of trade benefits ,and great regional trade benefit and welfare are lost. Part IV takes Gansu Province petroleum products trade as example, analyses the disadvantageous Gansu trade current situation under domestic distortion. Analyse showing, because of history and geographical feature, giving first place to primary product export has been engaged in planned economy is deficientin Gansu Province, affecting the economy accumulation, leading to gravely scarcity of capital,labour force and technology in Gansu Province. But after the reform and openness, although Gansu Province have regional trade decision-making right, domestic distortions make Gansu Province still can't get rid of regional term of trade worsening. Finally,from macroscopic view,giving less-developed regions equal rights on regional trade, more benefits to less-developed regions,then regional terms of trade can be improved.