Industrial Structure and Local Administrative Monopoly

In this article,a three-stage game is firstly raised.A detailed description is made in this article on the industrial structure between two provinces from 1983 to 2005 by virtue of the coefficient of "the similarity of industrial structure".The result is smoothed and can be divided into six types.What's more,a possible observation is that the industrial structure can be transitive between provinces.And seven hypotheses about the factors that affect the industrial structure is proposed.Next,the regression of the panel data of the six types is made to prove five of the seven hypotheses mentioned above.Finally,how to calculate reasonable extent of similarity of industrial structure are proposed.