Research On The Measurement And Influencing Factors Of China's Commodity Market Integration

For a long time,China has adopted an "export-oriented" development strategy.Practice has proved that the "export-oriented" development strategy has effectively transformed China's comparative advantages in the labor force into a competitive advantage in the international market,accelerated the pace of technological learning and capital accumulation,and laid a solid foundation for the realization of sustained economic growth in China.However,the actual facts at the low end of the global value chain(GVC)not only make China's economy vulnerable to external risks and external shocks,but also makes it easy for China's domestic industrial development to fall into a "low-end lock-in" and constrain China's economy to a high quality level.rising.Judging from the development experience of other countries,those countries that have always pursued an “export-oriented” development strategy and are at the low end of the GVC are hardly able to achieve value-chain climbs and industrial upgrading in GVCs controlled by developed countries.Positioned at the low end of the GVC,and later built in parallel with the domestic value chain(NVC)rooted in the domestic market,the country gradually achieved industrial upgrading and formed its own competitiveness in the international market.Therefore,we believe that by promoting the integration of the domestic market,building a domestic value chain,and promoting the transformation and upgrading of the industrial structure,it is the only way for China's economic development to shift from high-speed growth to high-quality development.The basic national conditions and special political institutional arrangements have determined that the integration process of our country's domestic market cannot be a process of natural evolution.The domestic market will inevitably be affected by multiple factors in the process of development.In order to promote the integration process of the domestic market more effectively,this paper attempts to further clarify the evolution process of China's domestic market integration and explore more fully the influencing factors behind the integration of the domestic market.Specifically,the writing path for this article is as follows:First,measure market integration.After examining the principles and advantages and disadvantages of different integration measurement methods,the "price method" was selected as the measure of market integration.Using the data of the commodity price chain index,the market integration index for 29 provinces,autonomous regions,and regions was calculated from 1992 to 2014.The weighted average calculated the integration index of the eastern,central and western markets and the integration index of the national market.The basic facts of development;then,explore the influencing factors of market integration and its evolutionary process.Examine the influence of institutional factors and natural factors on market integration,and examine the possible strategic actions that local governments may have in market opening.Based on the regression basis of market integration factors,the factorization of the integration index is conducted to examine the reasons behind the evolution process of China's market integration.Finally,based on the economic reality,the corresponding recommendations are made.This article draws the following main conclusions:(1)?Regardless of whether it is at the provincial level or the regional level,the market integration index generally shows an upward trend,and the degree of market integration gradually increases.?In 1992-1997,the regional integration index was relatively stable,and the integration process was unpleased.?From 1998 to 2007,the regional integration index showed a clear upward trend.The degree of market integration in the central and western regions was significantly higher than that in the eastern region,and the central and western regions were integrated.The degree of coupling of the index is high,and the degree of integration of the eastern region's integration index is low.?In the period of 2008-2014,the integration index of the eastern and central markets showed rapid pull-up and coupling,while the integration index in the western region was relatively stable and the degree of coupling with the central region index weakened.(2)?Institutional factors,natural factors and external factors all have a significant impact on market integration: the pressure of fiscal expenditure and the maintenance of the constraints of state-owned enterprise operations strengthen the incentives for local governments to implement protectionism;the construction of transport infrastructure is significantly promoted.Market integration;the situation of opening to the outside world and the development of internal open cooperation have not been formed;the increase in the degree of opening to the outside world has fragmented the domestic market to a certain extent;?local governments have “strategic” behaviors in the market opening,and pressure on fiscal expenditures.Strengthen this motive,and the improvement of traffic conditions weakens the ability of local governments to implement market segmentation;?The government has ensured that the relaxation of operational constraints of state-owned enterprises and the effective improvement of the state of transport infrastructure have brought about the strengthening of the market and natural forces.The main reason for the rapid development of the process.