The Division Of Labor With Regional Economic Growth And Spatial Structure

Nowadays economic growth is still a problem for many regions, disparity of economy growth brings so many problems, and makes it difficult to make reasonable public policy, puzzling not only developed countries but also developing countries. This paper reconsiders the division of labor, especially the evolution of the division. Then employing the view of division of labor, firstly, analyses the trade between the developed region and the undeveloped, with resource flowing freely and no emigration, pointing out that the trade may be inequitable for the latter, depending on whether the latter can develop an integrated and independent system of division within it. Secondly, based on new classical model, builds a general equilibrium model, with two peer to peer regions and free emigration, via the comparative statics analyze, proves the deepening of division shapes economic spatial structure, while accelerates economic growth, by making transaction costs endogenous and the model dynamic, further shows that region economic growth and spatial structure enjoy self-strengthen mechanism via division of labor and increasing returns of specialization. But if only with free emigration, both regional economic growth and spatial structure can reach a equilibrium consistent with welfare maximum. Finally, in testing hereinbefore conclusion, via structural equation modeling, China economy data shows that the division of labor accelerates economy growth, controlled by government, the spatial structure is independent on the division, and blocks the economy growth. Then, using historical materials, the paper puts the conclusion into food gathering-society, food-growing society, industry society and the main countries during the western rise for testing, Besides, analyzes Soviet Union and the city of Shenzhen both which are typical in the labor of division, Then explains why the spatial structure blocks the economy growth in China, and the theory conclusion doesn't conflict with historical fact. Namely, the division of labor determines regional economic growth and spatial structure, at the same time, spatial structure reacts to the division of labor, then, affects regional economic growth.