摘要
We discuss the effects of trade costs and comparative technology on industry location by employing the model presented by Martin and Rogers(1995).The model supposes comparative technology differences and different intraregional and interregional trade costs and argues how different factors influence location of industrial value added.By processing the designed model,equations were set up to check whether the conclusions from our mathematical model are credible under panel data at the provincial level of China from 1995 to 2014.We find that location of industrial value added in a region is strongly related to infrastructure and local market size while geographical location of a region is an important determinant for deciding which factor should be handled first.
