“Alfred Marshall’s footnote”

Anyone may correct me if I am wrong. In regards of the ‘Alfred Marshall’s footnote’ (see note 35 & 36 in part 6), the concept is that regional government can charge different ‘land prices’ in order to compete with one another. Less attractive regions even offer ‘negative price’ to absorb investment.

I agree that regional competition is important to China’s growth. In fact, we may look at China, instead of a single country, as an union of regions that compete with one another. The EU model may help us to understand situation a bit more. Let’s see how Professor Cheung further develops the idea.

Wallace S.T. Chan

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3 Responses to “Alfred Marshall’s footnote”

  1. kempton says:

    There are some states in US and provinces in Canada that offer “negative price” (or subsidies) to attract different industries to locate at their region. Car manufacturers used to get subsidies and I think Dell computer got some subsidies to locate a call center in eastern Canada too (which unfortunately they closed down some months ago).

    Interesting thought in the EU model. I wander if there are more competitions (and less cooperations) between regions in China?

    I have some reservation with this, “一个困难是中国的人口分布可能过于集中在热门地带,而较为长远的发展,略为平均的人口分布可能较上算。” Looking at the population density of Tokyo, NYC, HK, I don’t know if they are worst or better economic arrangement.

  2. chanwall says:

    I guess what Professor Cheung is trying to say is that some regions are very populated while some are not attracting people to stay. It makes sense for those ‘inferior’ regions to absorb more population by developing better local infrastructures.

  3. kempton says:

    I understand what you and Prof. Cheung are saying.

    I am waiting to get my hands on U of Toronto professor Richard Florida’s new book “Who’s Your City?” which talks a great deal about clustering.

    http://en.wikipedia.org/wiki/Richard_Florida

    I had a chance to listen to him at Banff last moth and he had delivered two tech talks at Google. By the way, Richard has a blog.

    Agree with Florida or not, it is an interesting look at things.

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