The "enclave economy" needs a development model that breaks the restrictions of administrative divisions. The basic guarantee for its long-term healthy development is that there exist a certain degree of complementarity in production factors. Shared political and economic interests is also required, and the two parties of the "enclave economy" must have a strong driving force for cooperation. The development of "enclave economy" is most vulnerable to the administrative management mechanism, and the reasons are as follows: firstly, the central government or the provincial government has insufficient policy incentives; secondly, it is difficult to establish an effective profit distribution and risk sharing mechanism between the two parties of the "enclave economy"; thirdly, the needs of regional development cannot be met under the intervention of administrative means.In order to develop the "enclave economy", it is recommended to deepen the reform of the administrative approval system, clarify the policy boundary between the central and local governments, establish a normalized discussion and coordination mechanism, improve the benefit distribution mechanism between protected areas and beneficiary areas, and adopt PPP models to attract the participation of social capital.
