An Endogenous Formation Model of Regional Economic Network and Regional Coordinated Development in China
Zhengxia Tang, Fengrong Liu, Lapo Hou
Abstract
Regional coordinated development is a rational choice out of interactions over the spatial economic networks. This paper proposes 3 types of effective regional economic networks due to endogenous development choice, which based on a simplification of the complicated real economy world and utility maximization process. The government will intervene in the endogenous development of the region if coordinated development of the region is conducive to the overall interests. It further implies that the ultimate goal is to establish a completely connected regional economic network or regionally economic integration pattern.
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