The Research On Local Protection And Marketsegmentationaround Shandong Peninsulablue Economic Area

Local protection is an important obstacle to the construction of a unified national market; it is also an important feature of China’s economic development in recent years. The market segmentation caused by local protection hinders the market mechanism, impedes the efficient allocation of resources, and it is not conducive to regional comparative advantage.Specifically, local protection is the implementation of the local government to exclude, restrict, and impede foreign enterprises to participate in the local competition, in order to protect local businesses and economic interests. Local protection often causes the blockade and segmentation of the market. Local protectionism and market segmentation is a new phenomenon in our economic life since the reform and opening up. It undermines fair competition, disrupts the market order, and it is not conducive to the formation of a unified national market.First, analyze the main economic data of Shandong Peninsula Blue Economic Area, and discuss the convergence of three industries structure in the region, then select manufacturing sector as the sample, by using of location quotient, comparative labor productivity, and industrial gradient coefficient index to calculate the competitive industries for each city. Finally, on the basis of the literature review on the status of local protectionism and market segmentation of the Shandong Peninsula Blue Economic Zone, causes, effects, a detailed discussion and analysis of historical data on the Shandong Peninsula Blue Economic Area degree of market segmentation estimates, by comparison with other economic areas to reflect the real situation of the local protection of the Shandong Peninsula Blue Economic Area.