Empirical Studies Of The Impact Local Protection On Regional Industrial Structure

30years since the reform and opening up, China’s economy has made considerablestable development, and the scholars have paid more attention to the increasingimportant role China’s local government has played.With the implementation of thedecentralization system tax which Characterized by sharing reform, the enthusiasm oflocal governments at all levels to develop the local economy is fully mobilized. At thesame time, the local governments have a more and more increasing willing tomonopolize the economic rent in its area. However the local government protectionissue has been gradually exposed. Such as market segmentation, repeated construction,low investment rate and other issues have a distorting effect on regional industrialstructure, and it severely inhibited the effective integration of the domestic market.Although local protection is an important determinant of regional trade andspecialization, so far in this party with comparison system comprehensive empiricalstudies are rare, and worth further reflection: Since reform and opening up, is the degreeof market integration in the end increased or decreased in China’s domestic market?Which kind of trend does the process of commodity markets integration show in China?How the behaviors of protection local economic have an impact on regional industrialstructure? This paper will explore to these questions. This thesis mainly includes thefollowing six chapters:The first chapter is introductory part. This part mainly introduced the researchbackground and significance, the main content and the structural arrangements, also theresearch ideas and methods.The second chapter is a literature review. The part mainly summarizes andcomments the influencing factors of the industrial structure and local protectionon athome and abroad, presentations on current issues, and put forward on the point of thisarticle.The third chapter is the status analysis of the regional industrial structure and localprotection. This part mainly introduces indicators of regional industrial structure, andquantitative analysis on the present situation and development trend of the regionalindustrial structure.At the same time, it creates to relative price change variance whichhas three dimensionalities(time, place and variety of products)according to “Glaciers Cost”theory model as an index to measure the degree of regional protectionism indifferent region and for quantitative analysis on its present situation and developmenttrend.The fourth chapter is a theoretical analysis of the impact on the regional industrialstructure by the local protection. The part analysis the impact of the industrial structurefrom four aspects of transportation, economic development, opening–up and localgovernment policies, and establishes a three-stage game model of local protectionismand regional convergence of industrial structure, focusing on analysis of local protectionon the mechanism of the impact of industrial structure.The fifth chapter is an empirical analysis of the impact on the regional industrialstructure by the local protection. The part constructs a measurement models to reflectthe industrial structure influencing factors in the control of the level of economicdevelopment, transportation conditions, the opening-up factors, focusing on empiricalresearch local protection of regional industrial structure.The sixth chapter is the conclusions and policy recommendations. According to theabove theoretical analysis and empirical research, this paper draw the conclusions ofthis paper, and put forward to eliminate local protectionism adverse impact and optimizethe industrial structure.