The Predicament and Solutions of Administrative Area Economy

Administrative area economy refers to the contemporary China from traditional planned economy to modern market economy in the transition process, because the administrative division on regional economic administrative division, and a regional economic integration regional economic division phenomenon counter. Administrative area economy will lead to government excessive intervention economy, industrial structure, market segmentation, local protectionism prevalence and administrative area boundary problems of economic failure, serious obstacle the development of regional economic integration. To establish the regional coordination mechanism, from the appropriate adjustment of administrative division, the improvement of the public finance system, and improve the government performance appraisal system and strengthen regional economic legislation to wait for respect proceed with, build socialist market economy with Chinese characteristics, the nature of the administrative area economy.