The Empirical Analysis On The Economic Effect Of The Regional Integration Policy In Province

Since reform and opening up,started the fiscal decentralization and the system reform,the Chinese market has also undergone considerable market fragmentation process,up to this day,the market fragmentation of basing on administrative unit is an indisputable fact.Early research focused on the existence of the market fragmentation and the causes of the market fragmentation,influence of the market fragmentation,etc.;However,since the 90’s,the Yangtze river delta,the pearl river delta economic zone appeared,formal or informal regional integration phenomenon in various forms in China between provinces and provincial inside,never interrupt.And with the increase of domestic regional integration case,scholars focus on Chinese domestic integration,especially the research of the specific reason and the effect for the integration between provinces are also more and more,but the research on China’s regional integration in the province is less.The existing literature study on the main body,motivation and selection criteria of the regional integration policy in the Chinese province,but the research about how to impact on the economic growth for the policy of regional integration Chinese province after the implementation,how the time effect of the policy effect and policy is through what way to affect the economic growth and the other issues are few.If these problems can be solved,on the practical significance can not only provide the effect evaluation after the regional integration policy implement in the city,but also can provide a forecast reference and suggestion.In addition,in theory,this article makes a systematic study from the provincial city level about regional integration policy economic effect referring to the economic growth effect,which provides a theoretical basis for further integration policy.Based on the above consideration,in general,the policy is mainly through the capital formation,labor supply and technological progress to affect the economic growth in the three ways,at the same time,according to the economic growth theory the capital,labor,and technology factors have a direct role in promoting economic growth,therefore regional integration policy may promote economic growth.This paper uses panel data of 23 cities of the integration occurred 2001-2012 years and the other cities in the province,empirical research conducted by the difference-in-difference method for the economic effect of policy,found the impact of regional integration policy on real per capita GDP is positive,but no significant effects on real per capita GDP growth rate,can be understood as the periodic economic growth,rather than the sustainable growth;This periodic growth is that the policy affects economic growth which channels to achieve,the study finds that the periodic growth is mainly investment effect which the policy effect on investment in fixed assets produced,did not realize the combination of efficiency factors by factor flow;The effect of regional integration policy is also affected by the behavior of the local government ability(fiscal expenditure ability),subject characteristic(provincial replacement is or not),the effects of regional integration policy under the change of provincial party committee secretary of the drive effect is better;at the same time the government’s fiscal spending power is higher,the policy effect is better;Although the eastern part of our country due to the low transaction cost,market level is high,the government and the elements are closer to natural integration,regional integration effect is better,but most of current our country province regional integration policy did not really break market fragmentation,then to achieve regional integration to the sustainability of economic growth must be completely break the administrative barriers and reducing transaction costs.