How Does Regional Integration Affect the Market Power of Enterprises in County:On the Reconstruction of Competitive Advantages of Enterprises under the Unified National Market
In the context of the new development pattern with domestic circulation as the mainstay,reducing local protectionism and regional barriers through regional integration is an important measure to build a unified national market.This paper takes the quasi-natural experiment of City-County Merge as the object and analyzes the impact and mechanism of regional integration on the market power of enterprises in county based on the markup of enterprises.The study finds that the reform of City-County Merge reduces the markup of enterprises in the merged counties(cities),re-duces the market power of enterprises in county,and promotes county-level competition.The mechanism test shows that City-County Merge reduces the markup by increasing the entry rate of enterprises in the merged counties(cities)and reducing enterprise subsidies,thereby increasing marginal costs.Heterogeneity tests show that City-County Merge mainly reduces the markup of en-terprises in industries with strong monopolies,non-ordinary prefecture-level cities,and high homo-geneity of industrial structure in cities and counties.In addition,through the reform of City-County Merge,the more product innovation,technological innovation,and service innovation carried out by enterprises in merged counties(cities),the more their markup increases.The research shows that in the context of the domestic circular economy,regional integration weakens corporate market power in underdeveloped areas,but enterprises can reconstruct their competitive advantages by in-creasing product innovation,technological innovation,and service innovation to promote high-quali-ty economic development.This paper not only enriches the research on regional integration and county urbanization,but also provides reference value for the reconstruction of competitive advan-tage of enterprises in underdeveloped areas from a practical perspective.
Regional IntegrationReform of City-County MergeMarket PowerMarkup
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