Abstract: This paper summarizes the trend of the evolution of inter-provincial trade in China from 1987 to 2007. We conclude the evolution trend and characteristics. First, the inter-provincial trade in China has maintained rapid growth, the total amount of inter- provincial trade in 2007 is two times of the volume of international trade, and the eastern region has always been the main body of the inter-provincial trade; for inter-provincial trade, GDP is the more important influencing factor rather than the distance. Second, inter-provincial trade has maintained a high degree of concentration. Third, inter-provincial trade dependence of China's provinces is a rising trend, and this indicates that China's domestic market integration continues to enhance; the dependence of the inter-provincial trade is three times of the dependence on international trade in 2007, and this shows that the degree of integration of the domestic market is still far higher than the level of international market integration. Fourth, the proportion of inter-provincial trade is showing a downward trend, showing that the speed of domestic market integration is slower than the speed of international market integration. Fifth, the provinces of long-term inter-provincial trade deficit are mostly of the central and western regions.
Keywords: Inter-provincial Trade, Provincial Input-output Table, Outflow and Inflow, Market Integration, Gravity Model
source:Finance & Trade Economics ,No10,2013