关键词: 市场分割 , 生产率分布 , 资源错配 , 面板工具变量

Abstract: Misallocation is a restraining factor of economic development in new status of Chinese economyExisting literatures focus on factor market distortion analysis but neglect the effect of market segmentation on misallocationIn the process of marketization of Chinese economy, there is a phenomenon that all provinces take market segmentation to develop economyThe segmentation strategies protect the inefficient plants in the province by increasing the transaction cost of plants from outside province marketThe transaction costs of market segmentation distort the price and quantity of producers, and lower the indifferent productivity level of industry equilibriumThus high degree of market segmentation should exhibit high productivity dispersion and lower average productivity levelsWe demonstrate this mechanism in a simple industry equilibrium model with heterogeneous plants and test it empirically using Chinese industry survey data 1998—2007We find evidence that market segmentation is indeed positively related to withinindustry productivity dispersion, that is, lower one percent of index of market segregation will reduce 394 percent of misallocationThere is policy significance to improve efficiency of resources allocation and structural reform of supply side.

Key words: market segmentation , productivity dispersion , misallocation, panel data IV