A Study Of The Spatial Economic Structure Of China Viewed From The Perspective Of New Economic Geography

Following the analytical framework of new economic geography, the paper thoroughly studies endogenous mechanisms of and exogenous forces on the evolution of spatial structure of Chinese economy. The paper analyzes the effect of regional development policy, transportation infrastructure, domestic market barriers, opening-up, labor migration and agriculture on the spatial economic structure. The econometrical analysis shows that the industry locates where the market is larger, the wage is higher where the industry agglomerates, and labors migrate to where the wage is higher. The paper also analyzes quantitatively the effect of supplier access,market access, labor cost on decision of location of different industries. This paper argues that the coast's natural geographical advantages and the policy support from the government organized the beginning exogenous agglomeration force. Agglomeration caused scale economies and promotion of wage. Then with the immigration, the market effect and scale effect, as the endogenous forces, caused the self-reinforcing agglomeration. National conditions, polices, FDI and export as the exogenous forces, and the endogenous forces caused the Core-Periphery structure. When governments make policies on industry development, they should think thoroughly of their comparative advantage, local market structure and the strength of market effect and agglomeration effect of different industries.