A PATH-DEPENDENT MODEL OF INVESTMENT AND EMPLOYMENT FLOW IN A LARGE ECONOMY IN A PROCESS OF INTEGRATION
- Received Date: 2004-01-09
- Publish Date: 2004-12-20
Abstract: This paper meant to analyze the spatial evolution of a large country in its process of integration with the world economy in general, and, to look into the possible effect of China′s accession into WTO on the future development of its spatial economy in particular. Through an approach of increasing returns, external economy, product differentiation and path-dependence, with foreign trade costs incurred by different regions within the large country discriminated, a model of investment and employment flow is developed as a simulation of a large country′s process of integration with the world economy. The modeling indicates that in the process of integration, as there exist differences in foreign trade costs among different regions within the large country, either the spatial economy of the country deviates from its symmetric structure in autarky and falls into a core-periphery relationship, or the effect of industrial agglomeration is reinforced, amplified and locked in, if the agglomeration had been started. The economic gap on either the aggregate or structural basis between different regions within the large country will increase rapidly as the integration proceeds.
|Citation:||LIU An-guo, YANG Kai-zhong. A PATH-DEPENDENT MODEL OF INVESTMENT AND EMPLOYMENT FLOW IN A LARGE ECONOMY IN A PROCESS OF INTEGRATION[J]. Chinese Geographical Science, 2004, 14(4): 289-295.|