LOCATION AND ECONOMIC GROWTH:CASE STUDY IN CHINA

来源 :Chinese Geographical Science | 被引量 : 0次 | 上传用户:haijiehahaha
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This paper explores how location could affect economic growth and it has always been omitted in economic analysis. Geographic factors can affect economic activities. Three mechanisms of location affecting economic growth have been studied: consumption, production and migration. The initial superior location will take such advantages as lower transport costs and lower price level, so it could have higher consumption utility, higher productivity, and attract more human capital, then lead higher growth. Those regions with the superior location will have higher utility due to more product varities and the comparative lower price, and higher wage due to the production technology, and it would attract more individuals with higher human capital to move to this location. It is a kind of agglomeration, meaning the superior location will hold more advantages and higher growth rate, otherwise those locations with poor geographic factor will be even worse. Based on Chinese provincial economic growth experiences of This paper explores how location could affect economic growth and it has always been omitted in economic analysis. Geographical factors can affect only activities in economic analysis. advantages as lower transport costs and lower price level, so it could have higher consumption utility, higher productivity, and attract more human capital, then lead more higher growth. Those regions with the superior location will have higher utility due to more product varities and the comparative lower price, and higher wage due to the production technology, and it would attract more individuals with higher human capital to move to this location. It is a kind of agglomeration, meaning the superior location will hold more advantages and higher growth rate, or not locations with poor geographic factor will be even worse. Based on Chinese provincial economic grow th experiences of
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