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Market integration and economic growth.
Shiqi Lyu1, Zexian Chen2, Simei Pan3
1School of Finance, Guangdong University of Finance and Economics, Guangzhou, Guangdong, China.
Market integration in the Pearl River Delta urban agglomeration hinders economic growth. Removing trade barriers and enhancing infrastructure are recommended to boost regional development and economic potential.
Area of Science:
- Economics
- Urban Planning
- Regional Science
Background:
- The Pearl River Delta (PRD) urban agglomeration is a significant economic hub.
- Understanding market integration's impact on economic growth is crucial for regional development.
Purpose of the Study:
- To empirically examine the relationship between market integration and economic growth in the PRD urban agglomeration.
- To identify the effects of market integration on regional development and surrounding areas.
Main Methods:
- Empirical analysis of market integration and economic growth data.
- Case study focusing on nine cities within the PRD urban agglomeration.
Main Results:
- Market integration within the PRD city cluster shows a negative impact on regional economic development.
- The effect of market integration on surrounding areas is negligible.
Conclusions:
- Eliminating market trade barriers and reducing local protectionism are recommended.
- Enhancing infrastructure and fostering collaboration are vital for leveraging city-specific advantages and amplifying collective economic power.
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