MODELING SPATIAL AGGLOMERATION WITH INPUT-OUTPUT LINKAGES AND MULTI-SCALE SPATIAL STRUCTURE

Abstract

 Evolution of hierarchical urban/regional system is observed in various spatial economic scales. This paper develops a multi-regional economy model with hierarchical (multi-scale) spatial structure and input-output linkages. We conduct numerical simulations to explore how the changes in interregional and intraregional transport cost affect the spatial distribution of economic activities. The results indicate that transport cost reduction causes re-dispersion from monocentric agglomeration, which is consistent with propositions in previous studies. We furthermore find some properties on industrial agglomeration patterns in the multi-scale spatial structure.