Local Protectionism And Regional Specialization In Jiangxi Pronvice

An important task that China faced from reform and opening up time is to establish an intergrated national market and to improve the development of regional economies. However, with the deepening of reform and rapid development of economy, local protectionism and market segmentation problems are gradually exposed which contents and forms are constantly changing. Inter-regional local protectionism and market segmentation make all regions'production can't work specialization in accordance with the principle of comparative advantage specialization, which further distorting the regional industrial structure. The regional industrial structure represented a model of production elements allocation, so it will have affects on efficiency of production elements and city economy. For this reason, to study the industrial structure from a regional perspective has become an important area in international economics and regional economics researches. Since reform and opening up, is the degree of market integration in the end increased or decreased within the Jiangxi Province? Which kind of trend does the process of commodity markets integration show in Jiangxi? What are its affects on regional industrial structure and what is its ways and mechanisms? This paper will attempt to answer these questions.On the basis of analyzing some papers about influence factors on industrial structure, this paper will first use similarity coefficient and the Hoover coefficient to measure each city's industrial structure. At the same time to create relative price change variance which has three dimensionalities (time, place and variety of products) according to"iceberg cost"theory model as an index to measure the degree of regional protectionism in different region and to discuss the historical changing process of industrial structure and regional protectionism in eleven cities of Jiangxi. Second this paper will analyze the regional protectionism functions on industrial structure which then will provide fundamental basis for the latter empirical analysis. This paper will create a dynamic model to reflect the influence factors of industrial structure in Jiangxi and focus on analysis of regional protectionism impacts on the differences of regional industrial structure. 2SLS estimation result shows that after controlling some regional and historical factors (such as transportation, technology, economic development level and industrial structure), the governments have significant negative effects on the inter-regional industrial structure differences. so if governments set trade barriers will increase exchange cost and further to accelerate the convergence of the industrial structure between cities. At last, this paper will simply talk about the political significance of its findings.