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Natural Resources and the Location of City:An Analysis on the Economic Mechanisms of Big River Development Axis

Jie Fan

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Abstract

Based on the methods of new economic geography,a spatial model is built to explore the effects of natural resources on non-resource-based manufacturing location choice behavior and thus characteristics of urban location.The results show that,when the resources-based manufacturing is small,the location of natural resources is remote,and the transportation costs of resources-based manufactured goods are small,the mode of city-industrial and mining areas will be the equilibrium state of regional spatial structure.When the resources-based manufacturing has a large scale,the natural resources located near the center of the region,the resources-based manufactured goods are characterized by high transport costs,resources-based city becomes an equilibrium state.The study also shows that circular causation of demand and path dependent effects play an important role in natural resources shaping urban location.Then,based on the research,the economic mechanisms of big river development axis proposed by Mr.Lu Dadao are completed.Finally,the paper is concluded and recommendations on China's regional practice are suggested.

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What this paper is about

Based on the methods of new economic geography,a spatial model is built to explore the effects of natural resources on non-resource-based manufacturing location choice behavior and thus characteristics of urban location.The results show that,when the resources-based manufacturing is small,the location of natural resources is remote,and the transportation costs of resources-based manufactured goods are small,the mode of city-industrial and mining areas will be the equilibrium state of regional spatial structure.When the resources-based manufacturing has a large scale,the natural resources located near the center of the region,the resources-based manufactured goods are characterized by high transport costs,resources-based city becomes an equilibrium state.The study also shows that circular causation of demand and path dependent effects play an important role in natural resources shaping urban location.Then,based on the research,the economic mechanisms of big river development axis proposed by Mr.Lu Dadao are completed.Finally,the paper is concluded and recommendations on China's regional practice are suggested.

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Available abstract

Based on the methods of new economic geography,a spatial model is built to explore the effects of natural resources on non-resource-based manufacturing location choice behavior and thus characteristics of urban location.The results show that,when the resources-based manufacturing is small,the location of natural resources is remote,and the transportation costs of resources-based manufactured goods are small,the mode of city-industrial and mining areas will be the equilibrium state of regional spatial structure.When the resources-based manufacturing has a large scale,the natural resources located near the center of the region,the resources-based manufactured goods are characterized by high transport costs,resources-based city becomes an equilibrium state.The study also shows that circular causation of demand and path dependent effects play an important role in natural resources shaping urban location.Then,based on the research,the economic mechanisms of big river development axis proposed by Mr.Lu Dadao are completed.Finally,the paper is concluded and recommendations on China's regional practice are suggested.

Key concepts: Natural resource, Resource (disambiguation), Scale (ratio), Exploitation of natural resources, Business, Economic geography, Causation, China

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