Boundary Effect,Factor Flow And City-Size Distribution

What is the optimal scale distribution of city? What determines the scale distribution of city? This problem has always been a hot issue in the study of regional economics and urban economics.By sorting out documents,the paper finds out that there is a certain connection between boundary effect,factor flow and city-size distribution,that is,the scale of factors determines the city-size,and the boundary effect affects the factor flow,and then the boundary effect affects the city-size distribution through factor flow.In this paper,two theoretical hypotheses are proposed and verified by empirical analysis under the theoretical framework that the free flow of factors can be achieved to reach the optimal scale distribution of city in an ideal integrated region.This paper studies the integration level of Guangdong,Hong Kong and Macao where there are“special boundaries” with the reference of the Yangtze River Delta urban agglomeration,which also analyzes the influence of boundary effect on its development.The results of the research show that the existence of boundaries does affect the flow of factors,thus affect the city-size distribution,and the degree of influence on different flow of factors are different.By comparing the scale distribution of Guangdong-Hong Kong-Macau urban agglomeration and the Yangtze River Delta urban agglomeration in 2000-2016 with Zipf law,the paper finds out that the Yangtze River Delta region is more in line with the standard zipf law through the development process of regional integration than Guangdong-Hong Kong-Macau Greater Bay Area,which provides a new empirical study on the degree of integration of Guangdong,Hong Kong and Macao.Considering that the existence of “special boundaries” in Guangdong,Hong Kong and Macao hinders the free flow of factors and thus affects the city-size distribution,a double difference model is constructed in the paper to further study the influence of “special boundaries” from different factor angles,and the variable of the time of policies is also added to test the effect of CEPA on “de-boundary” in Guangdong,Hong Kong and Macao,so as to provide a clearer and more accurate direction for the future development of Guangdong,Hong Kong and Macao.The results show that through a series of "de-boundary" measures by the governments of Guangdong,Hong Kong and Macao,policy shocks will have different effects on the flow of different factors and will change over time.CEPA has reached certain effects in promoting the flow of factors,affecting the scale distribution of cities,which has asignificant negative effect over the output scale and material capital stock while it turns to be positive when Hong Kong and Macao are excluded.The effect it has over the human capital stock is significantly positive,but the influence is relatively small.