Regional Path Of Dual-folds Opening Up And Pattern Of Institutional Transition: A Comparative Research On The Two River Deltas

It has been 30 years since China's Reform and Opening Up. More or less, the recent research on regional reform always ignored the influence of the opening up to the outside world as well as the opening up to other regions on its reform. In recent years, these two kinds of opening up became known as dual-folds opening up in economics. Hence, inspecting the progress of institutional transition in China on the coordinates of dual-folds opening up of regions, e.g., internationalization and interregionalization, is of great significance both in theory and in practice.On the basis of related literature, this paper describes the effects of internationalization and interregionalization of regions on their institutional transition separately, and then summarizes an integrated mechanism of the dual-folds opening up on institutional transition. Nowadays, the Yangtze River Delta and the Pearl River Delta are the two economic circles with the fastest development in China. After separate inspections and comparison of the dual-folds opening up processes in the two River Deltas, e.g., internationalization and interregionalization, and the patterns of institutional transition in a "government-market" framework, we found that each River Delta has formed its unique path of opening up and pattern of institutional transition. And these two kinds of paths are influencing the process of institutional transition in different ways.The results of VAR model and the multivariate linear regression model shows that in the long term, there exists a steady equilibrium relationship between internationalization, interregionalization and institutional transition, and in the short term, the influence of dual-folds opening up differs in its degree. This brings a lot of inspirations to other regions of China, especially to the Beijing-Tianjin-Hebei Region, China's third largest economic circle. And today's developing trend shows that China's regional economy is not only tending to the equilibrium of internationalization and interregionalization in its dual-folds opening up process, but also tending to the equilibrium of government-market relation in its institutional transition in the future regional Reform and Opening Up.