Government Coordination,Market Segmentation And Regional Economic Development

The world today is undergoing profound changes unseen in a century.Under the construction of a new development pattern of "domestic circulation as the main body,domestic and international dual circulations promote each other",a unified national market will be built,and an export-oriented economy will be transformed into a domestic demand-driven economy.The economy is of great significance for coping with global economic changes and promoting high-quality economic development.To unblock the domestic circulation is to clear the key blocking points that hinder the economic circulation,gradually release the potential of domestic demand,and rely on the advantages of market scale to support economic development.The historical experience of more than 40 years of reform and opening up shows that the role of the market mechanism needs to break the market segmentation between regions,remove the liquidity barriers of commodity factors,and enable production factors to be allocated among regions according to their comparative advantages.It is an inevitable requirement to build a modern economic system to continuously improve the construction of the market system and give full play to the decisive role of the market in resource allocation.On the other hand,the economic development of the urban agglomeration depends on the construction of the coordination mechanism within the urban agglomeration and on the coordination behavior of the local governments within the urban agglomeration.This coordination behavior is trying to break the market segmentation caused by administrative barriers and realize the free allocation of factors.At present,the trend of spatial distribution and concentration of factors is becoming more and more obvious.The urban agglomeration formed by the aggregation of multiple cities with similar geographical locations has become an important space and economic carrier for each region to participate in international competition and division of labor.Therefore,it is of practical significance to study whether the government coordination behavior of urban agglomerations breaks the restrictions of market segmentation,promotes regional economic growth,and optimizes the regional industrial structure,for evaluating the effect of urban agglomeration integration policies and improving the formulation of urban agglomeration strategies.This paper first analyzes the theoretical mechanism of market segmentation affecting regional economic development at the theoretical level,and discusses the theoretical significance of inter-regional government cooperation and park co-construction in breaking market segmentation and promoting regional economic development from the perspective of government coordination in the Yangtze River Delta region.Secondly,at the empirical level,this paper selects the panel data of cities in the Yangtze River Delta from 2002 to 2013,and uses the mediation effect method to conduct an empirical analysis on regional total factor productivity and regional industrial isomorphism affected by market segmentation.On the other hand,based on the quasi-natural experiment of the Yangtze River Delta City Economic Coordination Council and the joint construction of the Shanghai-Suzhou parks,the doubledifference method is used to test the impact of government coordination on regional economic development,and from the perspective of market integration and resource allocation.The influence mechanism was tested for mediating effect.The research results show that market segmentation between regions will reduce the total factor productivity of regions by distorting the allocation of factor resources,resulting in industrial isomorphism between regions.Joining the Yangtze River Delta Economic Coordination Council can improve the efficiency of resource allocation and improve the total factor productivity of the region by promoting regional market integration.Similarly,the experience of the joint construction of industrial parks in Shanghai and Suzhou shows that promoting regional industrial cooperation can significantly reduce the degree of market segmentation and resource distortion between regions,effectively avoid industrial isomorphism between regions,and promote industrial division of labor between regions.