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Yangtze River Delta’s System Integration: Institutional Barriers and Countermeasures

Discussion Papers


by Zhang Yu
December 2010


This paper addresses the issue of institutional barriers to the Yangtze River Delta integration and the resulting slow development. It analyzes the problems including the coordination of local interests and regional interests, market segmentation during the regional integration, competition for the local government‘s investment on the public goods, labor movement within the delta. The paper argues that to reduce the negative impacts of these barriers and to promote the further integration of the Yangtze Delta region, the central government should strengthen the coordination between local governments, regulate their disorderly competition and reform the official evaluation system.

Keywords: Yangtze River Delta, Institutional barriers, coordinated development
JEL Classifications: O20,H11,H77,O25

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