Because there is difference between the policy effect radius of local governments and natural economic radius, and local governments take more care of their local economic interest, the blank regions between provinces and municipality are inevitable to be formed in geographical spaces under the border spillover effect of market economy. When the local government officials pay more attention to the promotion, the increase of economic spillover effect can shrink the policy effect radius and enlarge border effect. China should establish servicetype governments, take the construction of public facilities and infrastructure as main investment direction, reconsider and define the border of the governments and market, perfect the policy negotiation between upper governments and lower governments, meanwhile, consolidate supervision and restriction, avoid regional development imbalance and regional border development standstill because of aimless pursuit of benefit and promotion, and decrease the backward regions resulting from government intervening or government laziness.