The Relationship Between Opening Up And Market Segmentation

With the development of our economy,more and more negative effects of export-oriented economy are exposed to the development.On the one hand,excessive reliance on foreign trade causes China's economic development ignoring the potential of the domestic market.On the other hand,excessive dependence on external demand leads to the volatility of economic development,any external market impact would have multiplied effects on the domestic economy.After the financial crisis in the United States,the vulnerability of our export-oriented economy was clearly exposed,the shrinking international demand caused a large number of domestic processing trade enterprises failures,sustained and rapid economic growth momentum was slowing.Therefore,promoting coordinated development of domestic and international markets is the key to remain sustainable development of our economy in the long term.However,Widespread market segmentation problem makes it a difficult problem in domestic and foreign trade in our country,both inside and outside the formation of the market to support each other economic growth path.With the development of opening-up,the factors influencing the fragmentation of the domestic market have also changed.Therefore,it is necessary to study the relationship between domestic market segmentation and opening up in the context of opening-up.This paper studies the trend of domestic market segmentation in our country in the addition of opening up.since the eastern region is regarded as the higher level of opening up In this paper we take the eastern religion as an example to research the relationship between reform and market segmentation.In order to promote the integration of domestic market,the policy suggestions are provided to reduce the segmentation degree of regional market.Firstly,this paper expounds the process of opening up,and determines the method to measure the degree of external openness used in this paper.Then,the method of measuring market segmentation index was analyzed and compared,and the market segmentation index was calculated by the relative price method.According to the calculated market segmentation data,the extent of China's overall market segmentation is analyzed.Finally,the relationship between opening up and market segmentation is studied in the eastern part of China.Through the selection of index and data processing,the quantitative model of open and market segmentation was constructed by using panel data.According to the results of the article analysis,With the process of reform and opening up,the overall market segmentation in our country is declining.After we divided the whole market into three sections,we found that the degree of market segmentation in eastern China is higher than the central and western regions.With overall market segmentation reducing,on the basis of measurement model results show that the relationship between opening up with market segmentation is non-linear,presents the inverted u-shaped relationship between them.In the low level of opening up,the degree of market segmentation deepened with the improvement of degree of opening up,but after the level of opening up has reached a certain degree,the degree of market segmentation would decrease with the increasing degree of opening up.Moreover,the empirical results show that the degree of economic nationalization is positively correlated with market segmentation,and the degree of market segmentation deepens with the increase of economic nationalization.According to the above findings,the article puts forward the following policy suggestion.Firstly,coordinate the international and domestic markets and coordinate regional economic development;Secondly,promote economic restructuring and transform the mode of economic growth.The last,promote the reform of state-owned enterprises and stimulate the market.