RESEARCH ON CONGRUOUS DEVELOPMENT OF URBAN AGGLOMERATION BASED ON REGIONAL EXTERNALITIES

Based on a study of regional externalities from both micro-and macro aspects and the analysis of Guanzhong urban agglomeration,this paper points out that market externalities and government decision externalities are two important elements that lead to conflicts of interests within the urban agglomeration, which in turn causes incongruity in the development of urban agglomeration.To overcome these externalities in the course of the urban agglomeration's congruous development,the paper argues that the guiding principle is to have them internalized and the primary approach is to innovate at the institutional level.Specifically to say,by appropriately formulating rational institutions and eliminating the externalities,we can achieve a good congruity in the development of urban agglomeration.