文档介绍：
Market Integration and Regional Economic Growth in
China
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Hong Tao, Ma Tao*
(School of Management Harbin Institute of Techonology)
Abstract: In this paper, we explore β-convergence of regional economic growth in panel data models
with economic dependence. Using methods of spatial autocorrelation and spatial error, besides replace
the spatial weight matrix with inter-regional linkages, we estimate the relation of market integration
and regional economic growth from 1997-2011. Base on this, we establish three facts: The year of 2004
is a break point from 1997-2011, the process of market integration, the situation of regional economic
growth and mutual effects of them all changed noticeably since then; In phase 1, there exists a trend of
divergence, and the higher is the level of market integration, the larger is the disparity of regional
economy; In phase 2, convergence effect arouse and the level of market integration has a negative
correlation with regional economic also confirm that the dynamic relationship of
market integration and regional economic growth is determined by market power mainly.
Key words: Regional Economics; Market Integration; Regional Economic Growth; Spatial
Econometrics
0 Introduction
China has been experiencing the drastic economic growth over the past three decades.
According to Song et al. (2011), the annual growth rate of real GDP per capita is nearly 9% from
1992-2004[1]. At the meantime, what factors led to such great achievements has been a hot topic
through the past thirty which, institutional reforms (Woo,1999[2]; Qian, 2003[3]),
rapid accumulation of capital (Chow and Li, 2002[4]; Wang and Yao, 2003[5]), the inflow of
foreign direct investment (Bai et al., 2010[6]) , human capital (Li and Huang, 2009[7]) and
substantial improvement in total factor productivity (Bosworth and Collins, 2008[8]; Perkins and
Rawski, 2008[9]) has been extensively studie