Because of rigid restriction of administrative region,governmental duty and local governmental behavior on regional economy,there is "administrative border economic phenomenon" between administrative borders,which makes administrative border region become the important region of regional coordinated development.Administrative border economy is influenced by space distance,border factor and transaction cost.The main characteristics are undeveloped economy,uncoordinated development and conflict.Overall regional coordinated development must overlook administrative region border economy.As a result,commercial product factor markets must be set up by emphasizing regional economic cooperation and trans-region management in order to lower transaction cost in economic activities of administrative region border.