This book investigates the industrial agglomeration and dispersion within a country under trade liberalization and interregional integration by considering both economic forces and geographical elements. Chapter 1 gives a brief introduction about the background, research topics and organizations in this book. Chapter 2 provides a detailed explanation of Krugman’s new economic geography (NEG) model and reviews the subsequent refinements of the original model from mainly geographical viewpoints. Chapter 3 extends Krugman’s original model to a two-country and three-region case where the domestic regions are fully asymmetrical in terms of their sizes and accessibilities to global markets. To better explain the reality of developing countries, chapter 4 presents an analytical model which assumes that unskilled workers are employed in both traditional and manufacturing sectors. Chapter 5 empirically investigates the home market effect (HME) in terms of wages in the case of China by using panel data for the period 1980–2012. Chapter 6 gives a summary and implication about the findings and conclusions in this book.

This book is the first attempt to investigate the impact of international trade liberalization and regional integration on the distribution of industrial activities within China, which offers an ideal setting to investigate this issue This book gives the rational of the success of coastal regions in China relative to other regions is accounted for by the interaction of geographical advantage (first nature) and self-reinforcing economic forces (second nature) It is conceivable that HME (home market effect) influences the spatial disparity across regions within a country. This book attempts to interpret a definition of HME and claims that HME contains two critical components i.e. PME (primary magnification effect) and SME (secondary magnification effect). It reinvestigates HME in terms of wages and study the evolution of spatial disparity during regional integration using panel data of China Includes supplementary material: sn.pub/extras

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