Spatial Evolution Of Urban Core-periphery Structure Based On Spatial Transaction Costs

Man-made space is both the result and the tool of collective cooperation.Division of labor is the endogenous feature of collective cooperation,and the key issue of division of labor is how to lower transaction costs caused by exchanges among interest subjects.Core-periphery structure is the fundamental form of division of labor on spatial composition,because all interest subjects' need for saving transaction costs can lead to the earliest spatial division of Core-Periphery.Organization structure is a characteristic of division of labor,within which efficient allocation of right to residual return is of great importance.Conversely,the allocation and the use of right to residual return is likely to alter organization structure of division of labor.The main methods of reducing transaction costs include connection,agglomeration,the merger or break-up of production organizations,and the third party enforcement of the commonwealth organization.In view of the metropolis being the most complicated man-made space,its central area is the combination of core-periphery structure and the above four methods in order to keep transaction costs at a low level.From the perspective of division of labor,the paper gives a new explanation model focusing on the origin and structural transformation of the two concepts——“city” and “market”——in the Chinese subcontinent,in which the transaction cost is the key variable,and seeks rules of changes on the core of Nanjing urban space.Adopting methods of quantitative analysis on spatial data,the paper then analyzes main features on spatial transaction costs,division of labor,spatial connections and commercial agglomeration of Nanjing from 1998 to 2016.On such bases,characteristics on space use of Xin Jie Kou are summed up and compared.Finally,the explanation to transformation mechanism of Core-Periphery Structure based on spatial transaction cost is given.The study finds that land resource endowment in the Chinese subcontinent shapes the initial mode of division of labor,which featured the exchange of interpersonal relationship within the collective and regarded the control of allocation dissymmetry of right to residual return as the core issue.As a result,the earliest organization tool and spatial tool are developed in view that dominating the core of man-made space is necessary to dominate allocation dissymmetry to residual return.Along with the scale and the extent of space of division of labor extending,both the organization tool and the spatial tool are improved continually,and the main source of residual return has changed from agriculture to commerce.The spatial structure composed of the inner and outer city walls,and urban hierarchical system featuring administrative control,derive from an integration of residual return to commerce and core-periphery structure.In Pre-Industrial China,the city which served as administrative purposes had been the organization center of built-up area,and the-inner-and-outer-city-wall structure had been used for controlling residual return to commerce.More importantly,the largest spatial structure with the-inner-and-outer-city-wall layout had being formed in Nanjing.However,the internal instability of commercial finance eventually impeded development of division of labor.Industrialization is regarded as paradigm shift of division of labor,and will surely trigger the rearrangement of city space and develop a new center.As a latecomer in the Industrialization,the only option of collective cooperation in China is that globalization is a suitable moment to take part in International Production and Distribution Networks.The choices of interrelated routine have shifted from Concession business,Nationalized Industry,Import substitution + export manufacturing,offshore production to Internet Business.Meanwhile,domestic cities are used for the development of Modern Industry,and the key for the location choice of the new center of city structure is to harmonize with historically formed the-inner-and-outer-city-wall space.Nanjing's new spatial center has not only failed to separate from the old spatial structure,but also failed to keep close spatial contact with new industrial districts.As a result,slow growth of multicenter structure of urban space leads to the relative highest rent of buildings.The constitution of Xin Jie Kou as the new center in the city of Nanjing,originates from interaction between multi-stakeholders.Under the restraint of the comparative high domestic land price,the supply of urban connection,dominated by government-owned capital,has consistently strengthened Xin Jie Kou's central role in the whole urban network,and commercial activities agglomerated in to the area of Xin Jie Kou have inclined to be self-strengthening since 1998.