A Regional Disparity Study In Perspective Of Spatial Economic Theory

Spatial economics as a new-developed theory attacts more and more attention in recent years. Following Krugman's Core-periphery model, spatial economic models have been tremendous developed. In this paper, expanded spatial economic models are introduced to explain regional disparity and its aggravation in China during the past three decades. There are seven parts in this paper, each as a chapter.Part 1 expatiated research theme and background of this dissertation, and explains the advantage of spatial economics over classical economics on the topic of regional disparity. A survey of spatial economics is included and related concepts are defined in this chapter.Part 2 gives a plain interpretation to a basic model in spatial economics,i.e. the symmetric core-periphery model, which was first modeled by Krugman and then complemented and improved by Baldwin et al. With all the mathematical formulas and mathematical analyses, the model expresses how maket share, real wage gap, population flow and trade freeness affect economic agglomeration.In part 3, the relationship between population flow and China's regional disparity is discussed based on core-periphery theory.In part 4, core-periphery model (CP model) is expanded by adding land as a non-flowable factor in fixed input. Different form classical core-periphery model, some interesting results are found. According to the analysis, any pattern of spatial industrial distribution could be long-term stable, and the function of population flow in classical core-periphery model could be broken, which causes a paradox of population flow in core-periphery model, which is a contribution to spatial economic theory. The expanded CP model explains how land price policy affects economic distribution in China during the past decades. Regional disparity of China is correlated to land price and housing price. Rapid-rising land price has increased the deconcentrating force in core regions of China, enterprise-migration from core regions to the periphery emerges. Despite this deconcentrating force, because of pass-dependence in spatial economic theory, the present core-periphery structure in China will last for a long period. The relationship between foreign direct investment and regional disparity is discussed in part 5. First, a fuzzy matter-element model for evaluation of the achievement and potential in absorbing FDI is established, combined with the fuzzy set theory and concept of matter-element. A scientific evaluation of the achievement in absorbing FDI of regions in China during year 2001 to 2004 is obtained. According to the research of factors determining FDI distribution, relative data is collected to calculate the potential of absorbing FDI of regions in China. In some regions, the variation between the achievement and potential in absorbing FDI is noticed, and the reason of this variation is inquired. Then, Artificial Neural Network (ANN) is introduced in another model to simulate the function of foreign trade, foreign direct investment (FDI) and regional GDP in China, explore how these two variables affect regional GDP together. This nonlinear and adaptive computation obtains a three-dimension function which is different from linear models. With data of 28 regions in China in the period of 1994-2005. The simulation finds a wave pattern of marginal GDP with foreign trade and FDI scale varying and an optimal scale of foreign trade and FDI for Chinese regions. Results in the simulation also indicate the possibility of economic deconcentration in some core regions in China. In the end, experimental results from fuzzy matter-element model and ANN model are explained by Constructed Capital Model in the view of spatial economic theory.In part 6, as a case analysis on narrowing regional by spatial economic perspective, strategy selection for revitalization of old industrial base in northeast China is investigated. Based on the policy implication of spatial economics, regional talent strategy, land price and housing price strategy of northeast China are explored. Industrial structure assimilation and nociceptive FDI competition among provinces in northeast China are highlighted in attracting-investment policy selection.Part 7 is a summarization. Main conclusions of this paper are listed and the future research direction of the theory are proposed.