Correlation between coordination cost and spatial distribution of enterprises
Wu Jian1, Wu Guangdong2, Li Mi3
COMPUTER MODELLING & NEW TECHNOLOGIES 2014 18(12C) 1237-1242
1 School of Management, Hangzhou Dianzi University, Xiasha, Jianggan District, Hangzhou,310018, China
2 School of tourism and Urban Management, Jiangxi University of Finance & Economics, Nanchang 330013, China
3 College of Mechanical and Electrical Engineering, Jiaxing University, Jiaxing, 314001, China,
It introduces the coordination cost to NEG model to analyze the impact of coordination cost on the spatial dispersion of enterprises. By solving the model and numeral simulation it finds that the enterprises’ agglomeration in central place declines when the coordination cost reduce. As long as the coordination cost keeps a constant relates to diversity of worker’s wage and product’s substitution elasticity, the spatial distribution of enterprises will not be affected by trade freedom.