Keywords：industry location, industrial geography
Author：Xing Weibo、Li Shantong
Summary：
Local protectionism is an important reason for the high barriers to trade between provinces and the segmentation of the domestic market. According to the fiscal revenue and expenditure structure of local governments, the ownership structure of enterprises in different regions and the division of labor market among regions, this paper analyzes how local protectionism affects China's inter-provincial trade. The empirical analysis of this paper finds that: local fiscal behavior and labor market segmentation have no significant impact on inter-provincial trade; the proportion of state-owned enterprises in local taxation can better reflect the negative impact of local protectionism on inter-provincial trade; the protection of state-owned enterprises is the most attention paid to local protection. One important factor is that if the share of state-owned enterprises in a region is higher, then the local government may be more inclined to close the local market.
