Based on China's micro enterprise data area and inter provincial panel data from 1998 to 2007, this paper uses a two‐way fixed effect model to study and analyze the impact of market integration and enterprise total factor productivity. At the same time, it investigates the different performances of enterprises with different institutional properties in the process of market integration. The analysis shows that the inter provincial market integration has a significant positive effect on the total factor productivity of micro enterprises. Further analysis points out that compared with state-owned enterprises, private enterprises, Hong Kong, Macao, Taiwan funded and foreign-funded enterprises are more significantly affected by market integration.