Propulsion System Of The Yangtze River Delta Regional Economic Integration Design Studies

Regional economic integration is a process of allocating reasonably and utilizing efficiently of all kinds of factors in the region. During recent years, although some goals have been achieved, there are still some obstacles in the development of the Yangtze River Delta (YRD) economic integration. As market beneficiaries and competitors, the local governments' behavior of pursuing self-interest results in regional barriers, and the high cost of resource allocation and utilization, which eventually hinder the development of integration. It is substantial to design an institution system on advancing YRD regional economic integration.Firstly, the paper analyzes the theoretical foundation and the empirical studies about regional economic integration. Secondly, after recalling the development of YRD economic integration, the author establishes an index system for the evaluation of the level of economic integration and calculates the index result. On analyzing the problems reflecting from the index system and the essential reason, the author make a conclusion that the main obstacle is from local governments. Lastly, on the basis of drawing on the experience of EEC, the paper designs an institution system on advancing the YRD economic integration, which includes establishing a regional integration institution under the guidance of the central government, and subscribing administrative contracts to eliminate administrative barriers.And at the same time, it is necessary to formulate administrative regulations restricting the participation of local governments in market competition, coordinate the competition rules and constitute regional policies to improve the integration level of industry, market and infrastructures, and eventually promote the development of economic integration in Yangtze River Delta.