為了解決上述的問題，也有必要重新省思未來市場化的方向與政策。 In traditional economics, the perfect competitive market could dispose the limited resources efficiently and make the market work effectively. For this purpose, the economists of neoliberalism urged that governments should reduce intervention and let market work itself. Market segmentation cannot be avoided because market-working itself leads to segmentation in the real situation. What we have to notice is the man-doing segmentation will lead to lower economic growth rate, efficiency of resources deployment and expand the differences between cities and countries. The market segmentation I discuss is the historic factors before the reform and opening-up policy and the institutional factors after the reform and opening-up policy, including the China government’s local protectionism causes. Under this background, I read the literature which studies immediately, and the conclusion is the labor market in China divides the most seriously. I study further the census register systems which lead to local protection action and take Shanghai as a case.
My conclusion is that geographic factors lead to normal market segmentation, historic factors lead to abnormal market segmentation, and local protectionism in institutional factors deeper segmentation. In institutional factors, financial policies are the key factor. The reforms of financial policies influence local governments’ actions and the flows of commodities. Under the protective atmosphere, the reforms and influences of census register systems will deeper the ideology of local protectionism in China and increase the cost of reform in the future. We could observe those by the reforms in Shanghai.
To solve the above-mentioned problems, we have to think the directions and policies of marketization.
