Market Segmentation and Regional Economic Growth

SONG Zhitao

Abstract


Market segmentation has the institutional quality. This paper analyses the impact of market segmentation on regional economic growth from the aspect of institutional economic theory. This paper analyses the long and short relationship between market segmentation and regional economic growth from property protection, government efficiency and incentive mechanism. We conclude that, in the short run, market segmentation can promote the regional economic growth; but in the long run, it will decrease the regional economy.
Key words: Market segmentation; Institutional economics; Incentive mechanism

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