Could Excessive Accumulation Inhibit The Economic Growth Analysis Based On New Economic Geography

Asa new disc ipline,the new economic geographyexpandedresearch space which focus on the relationbetween economic and space.The new economic geography also explains the mechanism of the formation of spatial aggregation. This paperbuilds a model basing on the p-c model and tries to find out the possibility of the excessive accumulation with data analysis. And this paper uses the data of Chinese provinces to research whether the excessive accumulation has happened in China.Article has five parts. The first part is the introduction.In this part I introduce the background significance logic innovations and difficult of this article. The second part is the literature review. This section introduces the economic scholars in the past how to study the relationship between the economic development and the special aggregation.Krugman based on the study of the regional economic in the past creates the new economic geography with the help of modern economy model. And he makes the economic and space more closer. This section first introduces the development of the new economic geography then makes a summary of the economic scholars’ studies. The third part is the theory analysis. I make an analysis of the excessive accumulation based on the p-c model. The analysis focuses on two aspects. First one is the possibility that the spatial aggregationinhibitingeconomic development. Second one is what factorscanregulatelabor mobility if the excessive accumulation has already happened. The fourth part isan empirical analysisbased on Chinese provinces’ data. First I verify the reasonableness of the cost of labor mobility which is presumed in the third part. The analysis pointed out that the cost of labor mobility increased faster and faster with the improvement of degree of the aggregation. The main content of the fourth part is finding out whether China has already made an excessive accumulation with the system GMM regression based on the Chinese provinces data. The last part is a summary of the total article. This part recapitulates the total paper and makes the revelation about this study.The model of this paper is different from the P-C model. It uses the cost of the labor mobility and the cost of transportation of the agriculture products. It lists the centrifugal force and centripetal force of the spatial aggregation. With comparing the two forces we can find out whether the excessive accumulation has happened. And the system GMM regression can offer an evidence of the extensive aggregation.