The Research On Price Transmission Between Provinces Of China

Price transmission is an important instrument of price monitoring and it is important to analyze the factors that influence the price and predict the future price, which can supply a lot of information to make an economy decision. There are a lot of researches about price transmission. All the research had different research time and research angle, but they all focused on the same region including the whole country or whole province. However, as the regional division of work and interregional trade developed, all the trade can't happen in the same region and the price transmission will also happen between different regions. As a result, we shouldn't only focus our eyes on the aimed region but also pay attention to the influence of other regions. This paper will try to settle this problem.We will find a theory basement to the interregional price transmission by analyzing the relationship between regional divisions of work, interregional trade and interregional price transmission. We will define the trade type and transmission model of each province. Finally, we will do some practical research about China's interregional price conduction.