| Abstract | Mainly in the input-output table of China's five years and 30 provinces, this paper first builds a database including intra-provincial trade, inter-provincial trade and international trade, etc. Based on method of border effect, this paper hereafter adopts this database to test international market integration and domestic market integration of China from 1987 to 2007.First, international trade of China gains explosive growth, but the degree of international market integration is still less than the degree of domestic market integration. If the degree of market integration is understood as an "equivalent tariff", foreign products are imposed as 38.1% tariff; other province’s products are imposed as 19.3 % tariff. Second, the degree of domestic market integration shows an upward trend after the first drop, the trend may reflect the shift of two forces between administrative relation and market relation among regions. Third, trade direction affects the size of border effect, the degree of international market integration is higher than the degree of domestic market integration in the direction of export and inter-provincial outflow; the degree of international market integration is less than the degree of domestic market integration in the direction of import and inter-provincial inflow. Finally, the integration order of domestic market of China is the first integration of coastal provinces, the re-integration of inland provinces; the first integration of intermediate goods industry, the re-integration of final product industry. The integration order of domestic industry market of China is reversed compared to the integration order of domestic industry market of developed country. |