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Agglomeration and Dispersion in China and ASEAN: a Geographical Simulation Analysis

Author

Listed:
  • Ikumo Isono

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Satoru Kumagai

    (Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO))

  • Fukunari Kimura

    (Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract

Spatial designing of economic development with enhancing connectivity has become essential to pursue both sustained growth and the narrowing of development gaps. The issue of agglomeration and dispersion in China and its neighboring countries is an example of requiring such an approach. This paper introduces the Geographical Simulation Model (GSM) based on the new economic geography setting and presents illustrative simulations on Asian Highway No. 3 and Kyaukpyu deep sea port development in order to analyze the economic implication of developing hard and soft infrastructure as well as lowering national border barriers for inclusive growth at the sub-national level.

Suggested Citation

  • Ikumo Isono & Satoru Kumagai & Fukunari Kimura, 2012. "Agglomeration and Dispersion in China and ASEAN: a Geographical Simulation Analysis," Working Papers DP-2012-02, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:wpaper:dp-2012-02
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    References listed on IDEAS

    as
    1. Rikard Forslid & Jan I. Haaland & Karen Helene M. Knarvik & Ottar Maestad, 2002. "Integration and transition: Scenarios for the location of production and trade in Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 10(1), pages 93-117, March.
    2. Kumagai, Satoru & Hayakawa, Kazunobu & Isono, Ikumo & Keola, Souknilanh & Tsubota, Kenmei, 2013. "Geographical simulation analysis for logistics enhancement in Asia," Economic Modelling, Elsevier, vol. 34(C), pages 145-153.
    3. Forslid, Rikard & Haaland, Jan I. & Midelfart Knarvik, Karen Helene, 2002. "A U-shaped Europe?: A simulation study of industrial location," Journal of International Economics, Elsevier, vol. 57(2), pages 273-297, August.
    4. Francois Joseph F & Wignaraja Ganeshan, 2008. "Economic Implications of Asian Integration," Global Economy Journal, De Gruyter, vol. 8(3), pages 1-48, September.
    5. Kawai, Masahiro & Wignaraja, Ganeshan, 2008. "Regionalism as an Engine of Multilateralism: A Case for a Single East Asian FTA," Working Papers on Regional Economic Integration 14, Asian Development Bank.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    New economic geography; computable general equilibrium models; logistics infrastructure; border effect; inclusive growth;

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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