Abstract

Acted as exchange platform for commercial goods and essential factors，the market is not unified since it is originallyborn，but is divided into many small units. Becoming more and more integrated is a commonly gradual historical course for all the market system，which is not a special phenomenon happened in the period of Chinese market transformation. However，the imperfect system will amplify the degree of segmentation during that period. Surely the factors affecting market segmentation are various，including both systematic factors （e.g. formal system of laws and regulations，etc.） and non-systematical factors （e.g. nature environment and technology etc.）. With the development of the economy and the expansion of market scale，the unified market would be beneficial for the free flow and utilize allocation of resources in the market.

So far，there is few systematic works have been done by researchers. Considering the inadequacy of existing studies，this paper tries to restructure the theoretical analytical framework of market segmentation. Using the theories of political economics，regional economic and new economic geography etc and applying scientific research methods of spatial econometrics，panel data analysis etc，this paper also conductly study theoretically and empirically. It will be a benefit not only to the academy，but also to give the politic advisory for breakthrough market segmentation and establish modern market system. During our study，we tried to answer the following questions：is market segmentation a unique phenomenon in the economy transferring period？How is it defined and classified？How does it emerge？What are the factors that affect market segmentation？By which means we can break it？What are the effects of market segmentation？Etc.

This article adheres to Marxist economics as the guidance. According to a certain logic structure，we carried out the research following a comprehensive theoretical framework，attempted to answer what is the nature of market segmentation. Our basic logic arranges as follow：general theory review—establish the theoretical framework of market segmentation，clarify its definition and classification （“what”）—analysis its causes and effect empirically （“why”）—exam the effect of market segmentation （“how”）—policy suggestion （“what to do”）.

Our study route is：firstly，through studying the deficiencies of existed theory，this paper redefines and classifies the market segmentation，and analyzes it causes；then，after comparing with the existed research methods，this paper picks the general accepted and modified relative price index，measures and analyzes the trend and its effects；after that，considering its effects on national or regional economy development，this papertries to analysis its social economy effects；finally，this paper gives policy recommendation based on the success experience of managing market segmentation from developed countries. Therefore，this paper’s roughly structure is：

Chapter 1，introduction. Mainly about the background，significance，general literature review，research method，content，structure and innovation，and so on. Regarding the literature review，we sorted out，categorized and commented on papers from both domestic and aboard. This paper includes three aspects：（1）classify the measuring methods，analyze the pros and cons for each of them；（2）analyze the factors affecting market segmentation，states the limitations in existed papers；（3）conclude the economic effect of market segmentationfrom the perspective of economy opening and economic growth.

Chapter 2，theoretical basis and theoretical analysis framework of market segmentation. In this chapter，we trace back to the source theory to provide the theoretical support and give theoretical analysis framework of market segmentation. Interpretation theory of market segmentation mainly follow two aspects：（1）Introduce of Marxist theory about market segmentation. First，analyze of the market and market rules. Second，analyze the relationship between the division of labor，productive forces and production relations. Third，elaborate the changing relationship between government and market by Marxist classical writers. （2）Review the western economics theory of market segmentation. First，the relationship between trade，division of labor，and market expansion is explained. Second，the relationship between division of labor，economies of scale，and regional economic integration is analyzed. Finally，the relationship between the government and the market in the perspective of Western economists is discussed. Considering that economic growth is the main manifestation of economic effects，we systematically combed the origin and changes of modern economic growth theory from the perspective of economic history and the history of economic thought，and provided theoretical support for the empirical analysis later. The theoretical analysis framework is mainly explained from the following two aspects：Firstly，the defects of the existing market segmentation theory analysis framework. Secondly，the construction of market segmentation theory analysis framework.

Chapter 3，the nature of market segmentation. Firstly，this chapter redefines the market segmentation and categorizes market segmentation as：natural market segmentation，technical market segmentation and institutional market segmentation；Secondly，this chapter analyzes the causes of domestic market segmentation，taking the North-East market as example；Thirdly，this chapter uses the modifiedmethod of relative price index to test the degree of market segmentation and its trend；At last，basing on the factors that affecting market segmentation，initiating from the effectual means to break market segmentation，this chapter analyzes the effects of infrastructure construction and tax to market segmentation.

Chapter 4，market segmentation and economic growth. This chapter mainly analyzes the impact of market segmentation on national or regional economic development from a macro level. Firstly，make qualitative analysis of the advantage and disadvantage of economy effects of market segmentation on national or regional markets；Secondly，exam the relation between market segmentation and economy growth，and explain of its ways；The last，in the context of regional developmentstrategic，exam the relation between market segmentation and regional economy growth.

Chapter 5，market segmentation and overcapacity of enterprises. This chapter mainly analyzes the impact of market segmentation on the overcapacity of enterprises from the micro level. The first is to analyze the impact of market segmentation on the overcapacity of enterprises；the second is to explore the heterogeneity of the two from the perspective of time and space，industry and motivation.

Chapter 6，success experience of managing market segmentation from foreigner countriesand suggestions of governing market segmentation. Reviewing the success experience of managing market segmentation from developed countries and combining with the conclusion made from empirical finding，this chapter gives some relevant policy recommendations.

Finally，conclusion.

Keywords：Market segmentation；Infrastructure construction；Tax system reform；Economic growth；Excess capacity