Regional Game,Industrial Specialization and Economic Integration

China Business and Market - - CHINA BUSINESS AND MARKET - YIN Zheng1,2 and NI Zhi-wei1 (1.Hefei University of Technology,Hefei,Anhui230009,China;2.Anhui Jianzhu University,Hefei,Anhui230022,China)

Abstract:Regional game and economic integration are the important factors that determine the level of regional industrial specialization. An empirical test is made to examine the impact of industrial specialization using the penal data of 25 industries in 31 provinces from the year 2010 to 2016. The results show that:local protectionism hinders the intra- province free flow of product,delays the development of regional specialization,makes industrial structure of different regions to tend to be the same, and results in the not efficient role of regional comparative advantages;the impact of internal economic integration on regional specialization is not significant,and the comparatively lower degree of internal economic integration has not play its role in promoting industrial specialization;the external economic integration can positively promote regional specialization,and it has significant positive effect;and the formation of regional specialization is closely related to foreign trade,but the relation with inter- region trade is not obvious. The policy implication is that our government should further promote regional economic integration,reduce local protectionism,give play to the role of comparative advantages of each region,promote the development of regional industries,change the evaluation mechanism of local governments,and promote trade cooperation among regions to promote the development of regional economic integration.

Key words:regional game;industrial specialization;economic integration;comparative advantage

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