A Study On The Growth Effect Of The Spatial Economic Of The Regional Market Segmentation

Under the background of the reform of supply side,our country aims to further deepen the reform of the market economy,promote the free flow of goods and elements across the region,establish and perfect the integration system of the market to realize the important driving force of the stable growth of economy.Since the reform and opening up,the level of the market integration in China has been greatly improved(Bai Chongen,2004).However,it is because of a series of influence imposed by the institutional obstacles,the level of integration of the commodity and factor market in China still have huge space to develop.The problem of local protectionism and trade barriers is still prominent.Although,to some extent,the short-term market segmentation will bring about the economic growth to the local economy through the employment protection of industry,this growth is likely to come from the "transfer effect" of trade between different regions,which is not beneficial to the efficiency of local resource allocation.Moreover,it is often at the expense of the overall scale effect,resulting in economic growth deviating from the long-term optimal path.With a total population and GDP exceeding 40%of the whole country.it has unique advantages and great potential for development.As a result,promoting the construction of the whole market integration in the Yangtze River Economic Belt plays an important leading role in promoting economic growth and regional coordinated development.Firstly,based on the price method,this paper measures the market segmentation index from 105 cities in the Yangtze River Economic Belt and makes an analysis on the time trends and the regional differences.Further,based on data packets analysis,this paper adopts the Malmquist index decomposition method to measure the total factor productivity of the Yangtze River Economic Belt and makes an analysis on the time trends and the regional differences to lay a foundation for further exploring the spatial effects of market segmentation on economic growth.Secondly,this paper establishes the theoretical mechanism of market segmentation affecting TFP and economic growth.This paper discusses the mechanism of market segmentation on total factor productivity and economic growth,and puts forward corresponding propositional assumptions,based on the spatial external growth model based on Redding(2005),among which hypothesis 1 from the proposition argues that the market segmentation damages the scale effect of regional development,which is not conducive to the realization of the matching effect of elements,and lows the production efficiency.Under the conditions of market segmentation,the regional cooperation is not going well.And the local protection and market barriers are prominent,which can easily lead to the waste of local industrial isomorphism and the waste of the resources from the repeated construction and to a certain extent,it reduce the production efficiency.The hypothesis 2 from the proposition argues that the influence of market segmentation on economic growth is uncertain,which will be determined by the integration of the market potential effect and the transfer effect.Furthermore,this paper conducts an empirical analysis on the impact of market segmentation on TFP and economic growth.And this paper empirically tests the empirical analysis of market segmentation on total factor productivity and spatial economic growth,based on the Durbin spatial model.This paper conduct an empirical analysis on 2008 chosen as an important time,based on the market segmentation index and the characteristics of the spatial Moran index of the total factor productivity,to empirically explore the effect of market segmentation on total factor productivity and spillover effects of economic growth and to decompose the direct and indirect effects.Finally,Targeted at the main conclusions of the study,this article puts forward some policy proposals to promote the integration and efficient development of the Yangtze River Economic Belt,including:to improve the regional cooperation system and mechanism,unify the market access system and break the barriers of administrative divisions,and to reform the current performance appraisal system,weaken the short-term incentive of local governments and improve the legal protection of regional cooperation.