Lei Xu

Abstract： The existence of regional trade barriers in the domestic market involves the boundary effect of the domestic market and the size of the market.The border effect leads to domestic trade costs rising and monopoly deepening.Especially when regional trade barriers are not natural barriers but market protection resulting from administrative orders and other reasons,monopoly is the problem of symbiosis with regional trade barriers,and jointly increase the market entry cost of the enterprise,then influence the market choice behavior of the enterprise.This paper calculates the size of regional trade barriers,and consider the market segmentation is an important reason for the rising cost of domestic trade.Through empirical research on the market choice behavior of Chinese manufacturing enterprises,it is found that trade cost as an important factor affecting the market selection of manufacturing enterprises in China.The key to expanding domestic demand is to eliminate the high cost of trade in the domestic market.

Key words： Trade Cost,Market Segmentation,Market Selection

JEL Classification： F14 1SlYUIMp5TkO2tVBtvycjCpblQMosEem96ZYM+xT9XYsWrUDz70z4eW19hlTDKtN