Weakening of Administrative Boundaries and Regional Economic Growth: From the Perspective of Interprovincial Circulation
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Weakening of Administrative Boundaries and Regional Economic Growth: From the Perspective of Interprovincial Circulation
HUANG Haoyi1,3, CHEN Wen2
1. School of Business, Hubei University, Wuhan 430062, China;
2. School of Economics, Xiamen University, Xiamen 361005, China;
3. Hubei Province Open Economy Research Center, Wuhan 430062, China
Abstract Using the multi-regional input-output table at the city level in China, this study combines the causal inference framework with the value-added decomposition framework to analyze the impact of interprovincial border effects on regional economic growth under interprovincial circulation. The results show that the weakening of administrative boundaries significantly promotes regional economic growth under interprovincial circulation, especially in the eastern region and in provinces with smaller productivity differences and better-developed infrastructure. In terms of the channels of influence, the weakening of interprovincial border effects can promote economic growth under interprovincial circulation by deepening domestic vertical specialization. This is specifically manifested in deepened interregional cooperation, refined division of labor, enhanced comparative advantages and reduced industrial homogenization levels. By employing the regional integration policy in the Yangtze River Delta as a shock for Difference-in-Differences (DID) regression, the above conclusions are confirmed to still hold. Moreover, the weakening of administrative boundaries can also promote economic growth under international circulation by optimizing the patterns of international circulation and reducing exposure to risks. It serves as a powerful means to achieve mutual reinforcement between domestic and international circulation. Therefore, it is necessary to further accelerate the construction of a unified national market, break down regional barriers and ensure the smooth functioning of domestic circulation to achieve high-quality regional economic development.
HUANG Haoyi,CHEN Wen. Weakening of Administrative Boundaries and Regional Economic Growth: From the Perspective of Interprovincial Circulation. Economic Survey, 2025, 42(5): 032.
2025, Vol. 42 
