| In the use of economics theories and methods, the paper studies:-The formation of new cities, the stability of the structure and the changes of welfare in town-cluster in China;-The relationship between the land size and urban population, industries and technological progress;-The relationship between trade costs and formation of town-cluster;-Agglomerating, diffusing and spatial distributing of industries;-Intergovernmental tax competition and cooperation;-Factors affecting administrative division and governance of town-cluster;-Analysis of status quo, problems and strategies of the four different stages of town-cluster. |